Portuguese government needs to beef up marketing of country’s wines in new markets as US tariff threat looms

The Confederation of Farmers of Portugal (CAP) has called on the government to “actively protect Portugal’s wine sector”, which faces being “heavily penalised” following the tariff war between the United States and the European Union, urging it to “present a robust short-term plan” that boosts funds allocated to marketing so that the sector can grow in other foreign markets.

In a statement sent to newsrooms, the CAP maintains that the Government, despite resigning and remaining in a caretaking role, has “all the tools and conditions” to protect the Portuguese wine sector, which “accounts for more than 300,000 operators throughout the value chain, from production to sale”.

It states that it is not only the producers that export to the US that are affected; it is the entire chain that stands to lose with the deteriorating commercial and market conditions resulting from the trade war,” it says.

The CAP was referring to the threat by US President Donald Trump of slapping a 200% increase in tariffs on European wines, in response to the announcement by the European Union that, in retaliation against the increase in tariffs on steel and aluminum imports, it will impose tariffs on products from the US such as bourbon.

Despite recalling that there is a World Trade Organisation to resolve disputes between Member States, CAP maintains that “the European Union obviously cannot stand idly by and watch the imposition of customs tariffs by any State and must respond quickly, proportionately, but intelligently to any attack on its interests”, although it calls for a rationale behind the decisions.

“Retaliating for the sake of retaliating, without looking at the consequences for the economy and society is something that has to be absolutely avoided by those who govern us, in Portugal and in Brussels. In this sense, the Portuguese Government must contribute to minimising this situation, asking Brussels that it carefully reconsider the products covered”.

Moreover, “because the sector cannot wait for this problem to be solved or for another one to arise in the meantime, it is essential that the government draw up a robust financial package for the marketing of Portuguese wines so that companies can gain a share in alternative export markets”, it says, recalling that last year, wine exports to the US market were worth about €100 million.