Approximation of Ukrainian law on competition with EU law in the field of food industry on the example of production of wine
Approximation of Ukrainian law on competition with EU law in the field of food industry on the example of production of wine

Summary/Abstract: Almost half of the world’s vineyards are in the European Union (EU) and the EU produces around 60% of the world’s wine. The EU is not only the largest global wine producing region; it is also the global champion of regulation and government intervention in wine markets. Government interventions have taken many forms in the EU wine markets. Regulations determine where certain wines can be produced and where not, the minimum distances of vines, the type of vines that can be planted in certain regions, yield restrictions, minimum prices for wine producers, etc. In addition public regulations determine subsidies to EU producers and wine distillation schemes. The EU also determines public subsidies to finance grubbing-up scheme (i.e. uprooting) to remove existing vineyards, and imposes a limit on the planting of new vineyards. The extent of the regulatory interventions – and the associated market interventions – is possibly best illustrated by the observation that in the past three decades every year on average 20 to 40 million hectoliters of wine is destroyed (through distillation) – representing 12% to 22% of EU wine production or, in other words, the equivalent of 3 to 6 billion bottles1. In Ukraine viticulture and winemaking, despite long-standing historical tradition still has untapped potential. If the pre-revolutionary period during the Soviet period the industry was the main driving force of the economy of the southern regions of our country, now regain its position it prevents a number of factors, including subjective. After signing Ukraine Association Agreement with the EU representatives of many industries try to calculate the positive effects and potential losses from such a move. Winemakers is no exception, as together with expansion of export opportunities their products will have sustain competition in price and quality – with foreign drinks which share is predicted, through few years will reach 50% of the domestic market.

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