Trade Dispute Moves Closer to Sanctions that Could Affect U.S. Wine Exports

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The ongoing international dispute over country of origin labeling (“COOL”) requirements escalated this week when the World Trade Organization (“WTO”) paved the way for sanctions against the U.S. On Monday, December 7th, a WTO arbitrator issued a report [1] authorizing Canada and Mexico to seek approval for sanctions of more than 1 billion Canadian dollars and more than 227 million U.S. dollars per year, respectively. One of the U.S. products that Canada and Mexico have threatened to target is wine.

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Empire Wine Bill Sent to Governor Cuomo

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This week marks another development in the Empire Wine saga. On Monday, the bill that would limit the power of the New York State Liquor Authority (“NYSLA”) to enforce other states’ laws was delivered to Governor Cuomo. Introduced in March by Assembly Member Phil Steck (D-Colonie), Assembly Bill 5920A (A.5920A), would prohibit NYSLA from penalizing licensees for violating the laws of other states, unless the conduct in question (1) is a violation of the New York alcoholic beverage control law or (2) has resulted in a criminal conviction in another state.[1] The Governor has until December 11th to sign or veto the bill. If he takes no action, the bill will automatically become law.

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NYSLA Proposes Narrow Definition of "Private Collection" Wines

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In a new draft advisory, the New York State Liquor Authority (“NYSLA”) has proposed a narrow definition of “private collection” that would reduce the amount of wine that can be sold in New York by non-licensed sellers. The purpose of the advisory is to provide guidance on the “proper purchase and sale of private collection wines and liquors,” but the advisory would have the practical effect of reducing the amount of private collection wine available to consumers. Some fine dining establishments with coveted wine lists rely on private collection sales to obtain hard-to-find wines. For this reason, some in the hospitality industry are predicting Doomsday for the wine lists of New York City’s high-end restaurants.

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Happy Thanksgiving!

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A little over a year ago, I started this blog with no concrete expectations. A lot has changed since August 26, 2014, but somehow I'm still writing. Thank you to all my friends and readers for your support, tips, and feedback. May you have a happy Thanksgiving in the presence of those you love—even if "those you love" means a few glasses of wine. No judgment here!

Best wishes,

Tracie

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Tracie Robinson