I. Identification

1. The Issue

When one hears of Shiraz Wine, echoes of ancient Persian classical history come to mind. However, since the 1979 Islamic Revolution in Iran, and the closing of the famous, ancient Iranian wineries centered in Shiraz; the brand (grape) and name of Shiraz Wine, has been mainly associated with two nations-France and Australia. While French wine and Shiraz grapes (also known in France as Syrah) has its own history, going all the way back to the crusades, and numerous other legends and stories of the wine exist, this study will look at the Australian Shiraz wine, beginning with its inception in 1832. However before describing the Australian Shiraz wine, a brief history (both mythical and historical) will be analyzed as a whole. This study will focus on the history of the Shiraz grape in Australia and the story behind the Shiraz grape in general. I will also analyze the regions in Australia where two different styles of the wine are made, and describe the environmental conditions needed for the grape to grow.

2. Description

The story of the Shiraz contains many accounts of its origin and how it has passed on from one nation to another. Two more commonly used and known tales contain how the wine was started and the second on how it left Iran and spread itself out, first to France, then on to other lands. One bases itself on the founding of the grape in the ancient city of Shiraz in Iran(Persia), the other is shrouded in myth and legend about how the wine reached France, and ultimately then to Australia and other parts of the world like California. Thus, the two stories mix both classical and European histories together to give this wine its ‘romantic’ image of both East and West.

The Legend of Iran and Wine

Iran until the 1979 Islamic Revolution also used the name Shiraz on its wine exports. Hence, these two stories show how the legend of this grape has led to the mystery of who can really claim the name Shiraz . Iranian legend on the Shiraz grape is old and ancient as the land itself. Story setting; Pre-Islamic Iran 3,000 years ago-Shah-han-Shah (King of Kings) Jamshid, a lover of grapes, one day asks several worker to get him some grapes from the grape storage cellar. The servants do not return promptly to serve their King his grapes, so Jamshid goes down the cellar and discovers that the servants were knocked out from carbon dioxide gases emitted form some bruised fermented grapes. One of the Kings suicidal mistresses knowing this story decides to go down to the cellar herself to drink one of the bad grapes and die (or so she thought). She drinks the potion in low spirits and is found by the king later she is in high spirits and dancing (drunk) and hence the Shah-han-Shah discovers Shiraz wine and the ability to make sad people into happy upon drinking this fermented grape. The Shiraz wine is born on that day. Coincidently, this is the same wine that Alexander the Great in his quest for domination when he went towards the Middle East is said to have drank when he sacked the Persian Capital of Persepolis and in a drunken rage burned the ancient capital down in retaliation for the Persians burning and sacking Athens years before.

Pic: Left Alexander the Great confronting Darious the Great(Persian King).

France, the Crusades and Syrah (Shiraz)

Second legend: Setting the Crusades-13th Century: A French Knight by the name of Gaspard de Sterimberg, near Shiraz discovers these grapes in the vineyard, takes some back to his home Hermitage (farm) in the Rhone Valley and the legend of the Shiraz Grape is born in the West. Some contest that the origin of the grape is from the Rhone Valley and that old Shirazi vineyards used the grape. However, whatever the case may be, the Grape is both East and West.

This study will attempt to delve into what really is Australian Shiraz Wine, and what are the unique attributes that make it Australian Shiraz. The key issues center on France and Australia , and how each though using different names: for France (Syrah), Australia ( Shiraz ), actually produce the same wine, yet take the name. There are historical and social ramifications for this as the French Syrah is more renowned, yet the Australian one is the same. The main theme of this study is to try to dispel the myths of this wine and to get to the truth of what actually is the Australian Shiraz red wine grape and how is it different from the ones in France and California and hence geographically known as the Australian Shiraz wine. Furthermore, will examine if there are any environmental or legal issues over the matter of the name “ Shiraz ”.

3. Related Cases

Alcoholic Drinks: Related Cases to Australia Wine

1) Grappa

An alcoholic drink that has become an issue of contention between South Africa and the EU.

2) Sake

Japanese Rice Wine

3) Tennessee-Whiskey-Protection

Protected under NAFTA and the WTO for protection of geographic indicators of wines.

4) Vinewine

French problem of wine surplus not only in France but the EU as well, which leads to low quality wine.

5) Wine-pact

The Mutual Acceptance Agreement (MAA) between seven nations based on an understanding and respecting of each country differences in growing methods, views on wine production.

6) Zinfandel

Dispute between California and Italy in naming a particular type of wine; zinfandel.

12 Case studies focusing on Australia

The table below yields 8 cases which are similar to Australia Shiraz because they are specific to an area (yet can be produced somewhere else) include: Bacardi, Baiju, Mexico-sugar, Brazilian-Cachaca, and sake.

The 15 cases listed below range from bilateral to multilateral disputes between nations who want to and/or are trying to have a food item be a geographic indicator. For example; the Georgia Peaches, Florida Oranges, Idaho potatoes, and so forth are all food items (like the Shiraz grape) that although can be grown anywhere, the site of origin is sought to be an indicator. In closer cases to alcohol, scotch ( Scotland ), Tsingtao Beer, Korean Soju, and Tennessee Whiskey all involve disputes between one or more countries in which the sight of origin and the name of the product are in dispute, as is the case with Shiraz wine-between USA ( California ), Australia , and France .

Nine Issues dealing multi-laterally with food and intellectual property similar to that of Australia Shiraz.

The Overall Context of Similar Cases:

Out of a total of 55 results, the below are the cases that came up the most as can be seen in the chart, clearly the wine pact and grappa are the closet to this case. Grappa: 5 times =9% Vinewine: 2 times =3.6% Tennessee Whiskey-Protection: 2 times =3.6% Wine Pact: 5 times =9% Sake: 2 times =3.6% Scotch: 2 times =3.6%

Zinfandel: 2 times =3.6%

Wine/Alcohol Related Cases out of 55 results: 28 times out of 55=50.9%

Cases Dealing with Australia out of 55 results: 17 times out of 55=30.9%

4. Author and Date: Ali Ardeshir Jowza

M. A. Comparative and Regional Studies of the Middle East and Central Asia. https://iranian.com/2003/10/17/the-game-2/, May 2005.

 II. Legal Clusters

5. Discourse and Status: Disagreement and Complete

Backdrop:

The legal issues concerning wine have been long and drawn out over the years in forums such as the WTO, EU and various multi and bi-lateral agreements between various wine exporting and importing nations. For Australia the issues concerning wine include: -Attempting to reduce the tariffs on Australian wine, for Aussie wine is the highest taxed wine export. -Securing Geographic Indicators and names for its wine products-especially Shiraz Wine. -Striking deals with the EU, the US and some Latin American countries, for tariff reduction, name rights to Shiraz wine (GI), etc.

Uruguay Round, Agreement Covering 4 Key Issues:   The main discussions in this WTO round center on intellectual property rights.

1) How basic principles of the trading system and other international intellectual property agreements should be applied

2) How to give adequate protection to intellectual property rights

3) How countries should enforce those rights adequately in their own territories

4) How to settle disputes on intellectual property between members of the WTO

Key Issues that are being looked at for the Doha Rounds: The Doha Rounds again will focus on the various agreements between wine exporting and importing countries, and attempt to bring them all under the umbrella of the WTO. Furthermore, it will look at how wine nations can exchange information with each other on wine techniques, eliminating wine making problems, dealing with weather and such. -Multilateral environmental agreements -Information Exchange -Observer Status -Tariff and non-tariff barriers.

Australia and the EU: An Australian-EU agreement (1994-now placed under the Joint Declaration on Relations between Australia and the European Union-hence recognized worldwide by the WTO) has formally put into place geographic indicators of wine areas, and thus Australia’s wineries all are geographic wine indicators. More in detail, as stated in the charter under Economic Relations:

The Wine Agreement (1994) aims at protecting a number of geographic indications and traditional expressions while improving access of Australian wines to the European Community market .

The Wine and Spirits Agreement (EU leads the Way): The Wine Agreement (1994) aims at protecting a number of geographic indications and traditional expressions while improving access of Australian wines to the European Community market. This agreement structured by the EU on reducing tariffs, recognizing geographic wine indicators, labeling agreements and so forth has been formed and it seems the top wine nations are all on board(including the US and Australia).

Key Laws in the Agreement :

The key laws in the wine and spirits agreement that help Australia and the title of Shiraz Wine is the law that states:

-“labeling means all descriptions and other references, signs, designs, geographical indications or trademarks which distinguish wines and which appear on the container, including its sealing device or the tag attached to the container and the sheathing covering the neck of bottles.

Second, on GI’s, although Shiraz wine/grape did not originate in Australia, four nations(Australia, USA, France, South Africa) basically lay claim to the name, which is protected under the act when it states:

-“geographical indication means the indication defined in Article 22(1) of WTO TRIPS Agreement, which is protected under the laws and regulations of a Party for identifying a wine originating in a region or locality within that party.”

Protection of Geographic Indications:

The following names shall be those referred to in Article 5: -as regards wine originating in the Community:

I) terms referring to Member State in which the product originates

Australian-US Free Trade Agreement:

-US Wine Tariffs to be eliminated in 11 years -Wine Equalization Act

With regards to the United States and Australia, on February 10, 2004, the Australian-US Free Trade Agreement has said with regard to wine and free trade that they support the easing of tariffs on wine. “Although full details are not known, US wine tariffs will be eliminated after 11 years.”

Right now, Australian wine exports (Shiraz included) are the highest tariffs around the world (including the US), and thus this agreement will save the Australian wine makers billions. It seems after the EU-Australian agreements to reduce tariffs on Australian wine exports, other nations like the United States and all other nations that Australia exports to are taking note.

WTO: Extension of the Protection Geographical Indications for Wines and Spirits to Geographic Indications for all products:

The Trips Agreement in which 8 nations (USA, Australia, EU, Canada, Chile, Guatemala, New Zealand, Paraguay and Argentina) are involved protects the name Shiraz for Australia as stated in Article 22:

Article 22: The TRIPS Agreement already obliges Members to facilitate the protection of GI’s for all goods.

Internal Australian Issues:

Internally, the issue with Shiraz is to first protect the 8 regions which produce the grape/wine as the 1995 Wine Agreement stipulated.

The Wine Agreement (1994) aims at protecting a number of geographic indications and traditional expressions while improving access of Australian wines to the European Community market .

This in a sense means that all the geographic areas in Australia that produce the Shiraz wine can legally use the name Shiraz.

1- Margaret River
2 – Barossa Valley
3 – McLaren Vale
4 – Coonawarra
5 – Yarra Valley
6 – Mudgee
7 – Orange
8 – Hunter Valley

Improving government policy support

Furthermore, to improve the Shiraz wine industry in an ever increasing world wine market, the Australian government has outlined five key laws and actions they want to see happen in the wine industry with the collaboration of the Australian government and the wine companies.

• certainty in retention of the current taxation level and structure for wine and brandy reviewing trading stock valuation, particularly the maturation of trading stocks geared to premium wine production increased support for industry R&D (basic and applied) sound macroeconomic management, particularly to ensure stable and realistic exchange rates lower tariff and non-tariff barriers via multilateral and bilateral negotiations continued close collaboration on health issues and community alcohol education programs enhanced support for wine export promotion
• acknowledging industry’s requirements for an appropriate industry statutory structure
  
  
  

To the Future: Like all wine producing nations, Australia has signed on with various international and European agreements that aim at reducing tariffs and are keen on drafting similar laws on the health/environmental and other such issues on how wine should be produced. In addition, the countries seek a full agreement on Geographic indicators as well as name patents (i.e. Shiraz wine). Australia’s wine future seems bright in this regard with laws and will continue to expand in its exports. No laws seem to hinder/bother the Australian wine industry, as in each case that they are not in agreement with they either strike up bi-lateral/multi-lateral agreements and/or sign on to world-wide agreements.

6. Forum and Scope: WTO and Multi-Lateral

7. Decision Breadth: 4

8. Legal Standing: Treaty

Australia is signature to a lot of treaties both international and bi-lateral. As detailed the most notable for Shiraz wine include: Wine and Spirits, Australia-European Agreement(1994), WTO-Uruguay Round, Australia-United States Free Trade Agreement, and the WTO Trips Agreement.

 III. Geographic Clusters

9. Geographic Locations

a. Geographic Domain: Asia

b. Geographic Site: Australia

c. Geographic Impact: Australia

10. Sub-National Factors: Yes(Wine Growing Regions)

11. Type of Habitat: Temperate

 IV. Trade Clusters

12. Type of Measure: Intellectual Property

13. Direct v. Indirect Impacts: Direct

14. Relation of Trade Measure to Environmental Impact

a. Directly Related to Product: Yes, Australia Shiraz

b. Indirectly Related to Product: Yes, Grapes

c. Not Related to Product: No

d. Related to Process: Yes, Intellectual Property

15. Trade Product Identification: Australia Shiraz Wine

Australian wine exports have been rising dramatically for years now, and part of that has to do with the popularity of its red wines, and the main one being the Shiraz grape variety. Europe and North America are the main importers of Australian wine (see table 2) with the United Kingdom and the United States being the top in each region. As no exact statistics (from my research thus far) exist on the exact number of the Shiraz variety of wine that is exported from Australia, rather all wine exports are lumped into one category. Nevertheless, one can still get a good idea of the extent of Australia’s wine exports through the statistics listed below.

Led by Shiraz wines, wine exports will continue to rise for the Australian wine industry as the graph below makes clear. Since 1992, Australia has been exporting more wine then it imports. In addition, as the imports of wines(in numbers) has stayed moderately the same, exports(especially after 1997) have risen dramatically, due in large part to the various treaties, laws and other such protections that Australia has made with other wine exporting/importing nations.

For the year of 2003-04 Australia exported a record 584.4 million liters of wine, a rise of 12.7% to its current value of $2,494.1m.

1. EXPORTS OF AUSTRALIAN WINE AND IMPORTS OF WINE

Australia’s major wine market lies in Europe, with Great Britain being the leader in exporting wine in Europe, while in North America, the US is the leading importer. Imports to the United States will continue to rise when the expected high tariffs on Australian wine will be reduced.

2. Top two regions and Countries for Australian Export of Wine

With Europe and North America being the top destinations for Australian wine, it is not surprise that Australia focuses most of its treaties and deals with these two areas. As the areas also show in the chart below, Europe and North American are also areas where more Australian wine exports are continuing to rise.

  3. DESTINATION OF AUSTRALIAN WINE EXPORTS – 2003-04(a)

Pt.2 Trade Measure(s)
An Australian-EU agreement (1994-now placed under the Joint Declaration on Relations between Australia and the European Union-hence recognized worldwide by the WTO) has formally put into place geographic indicators of wine areas, and thus Australia’s wineries all are geographic wine indicators. More in detail, as stated in the charter under Economic Relations:

The Wine Agreement (1994) aims at protecting a number of geographic indications and traditional expressions while improving access of Australian wines to the European Community market .

This in a sense means that all the geographic areas in Australia that produce the Shiraz wine can legally use the name Shiraz. With regards to the United States and Australia, on February 10, 2004, the Australian-US Free Trade Agreement has said with regard to wine and free trade that they support the easing of tariffs on wine. “Although full details are not known, US wine tariffs will be eliminated after 11 years.” Right now, Australian wine exports (Shiraz included) are the highest tariffs around the world (including the US), and thus this agreement will save the Australian wine makers billions. It seems after the EU-Australian agreements to reduce tariffs on Australian wine exports, other nations like the United States and all other nations that Australia exports to are taking note.

The Wine and Spirits Agreement (EU leads the Way) This agreement structured by the EU on reducing tariffs, recognizing geographic wine indicators, labeling agreements and so forth has been formed and it seems the top wine nations are all on board (including the US and Australia). Some key laws in the agreement include: -“labeling means all descriptions and other references, signs, designs, geographical indications or trademarks which distinguish wines and which appear on the container, including its sealing device or the tag attached to the container and the sheathing covering the neck of bottles.

16. Economic Data:

With adequate acreage of wineries and a growing Australian export market, the data below shows how large the industry has become for Australian export and domestic sales.

17. Impact of Trade Restriction: High

18. Industry Sector: Food and Drink

19. Exporters and Importers: Australia and Many

Top Exporters and Importers of Red Wine

Rising steadily over the years, Australia is now only behind Europe’s big three(Italy, France, Spain) in wine exporting. This means that the Australian wine making industry has gained recognition as being one of the best, second only to the European wine powers. The Shiraz wine makes have only benefited from this, and will continue to do so, with more agreements/treaties that will protect the name Shiraz.

Nevertheless, it is important to note that the gap between Australia and the three European leaders is too big to really catch up, and perhaps, Australia will never overtake any of the three. What’s certain is that Australia though can increase the gap over its competitors below it in the chart, such as Chile and the United States. This will become more evident if Australian wine tariffs throughout the world will be reduced as it seems they will with the way the Australian wine makers and government have been making long term deals with other countries and nation blocs to achieve a lowering of the tariffs.

It is interesting to note that Australia is not among the top 10 Wine importers, meaning the Australian wine makers have less competition then other wine countries that are on both lists such as France and the United States.

 V. Environment Clusters

20. Environmental Problem Type: Intellectual Property

Considering that Australia has already implemented laws on each of the 8 regions that produce wine(Shiraz), the space allocated for wineries does not seem to be a problem(environmentally and socially). There is no problem associated with other food production such as farming, as their is minimal pollution, and as the spaces have already been allocated their is no deforestation or desertification.

Some general facts about the grape in Australia reveals that Shiraz is the most popularly grown grape and the most lucrative.

1) General Information : -40% of Red Grapes Planted in Australia is of the Shiraz Wine.

-130 berries per bunch -Long and loose branches with good disease resistance and the grapes thrive in warm spring type weather, as well as cool weather.

2) Australian Wine Exports: Shiraz number one 2002-03: 508 mill liters, $2,386 Million

Shiraz Number one grape in Australia with 319,626 tonnes crushed in 2003.

3) Other Issues about the Grape

– France calls the grape Syrah, but Australia and France as well as California are in dispute of the name Shiraz (grape), as winemakers outside of Australia are using the name Shiraz rather then Syrah more in an attempt to cash in on the success of the name Shiraz that Australian wine makers have had.

Australia got the grape in probably when James Busby introduced it in 1832.

21. Name, Type, and Diversity of Species

Name: Shiraz/Syrah

Scientific Name: Vitis vinifera

Type: Fruit: Grape

Up to 130 berries per bunch, an after 2nd year, are usually harvested and picked to become red wine.

Diversity: Unique grape distinguishable from others because it produces full rich wines of intense color and flavor.  In warmer climates like Australia, the grape produces wines that are sweeter and riper tasting. In cooler climates like the Rhone valley of France, it often has more pepper and spice aromas and flavors.

22. Resource Impact and Effect: Low and Product

23. Urgency and Lifetime: Low and 1-2 year cycle

24. Substitutes: Like

Grosse Syrah and Petite Syrah is another divergence of the Shiraz branch. The only difference being berry size. Petite Syrah tends to produce dry, dark wines with lots of tannins, spice and black pepper. In addition Mondeuse Blanche and Dureza grape when mixed together produce a variety of the Shiraz grape.

 VI. Other Factors

25. Culture: Yes

With its origins in debate, there is one thing that is certain and that is the grape has been a world traveler; as it is present in North America, Europe, Iran, Africa and Australia. Although the United States and South Africa also have Shiraz grape varieties it is France(besides) Iran, which due to the long history of the grape in French vineries can culturally claim the grape they call Syrah as French and European. What remains to be seen is if Iran will want to claim the name as culturally “Persian” and therefore Iranian property, something it has not done, in either pre-1979 Islamic Revolution or post. Thus, as it stands right now their is no cultural debate as the grape is European/Iranian with France identified as if not the birthplace, then the region where the wine was made famous in modern times.

26. Trans-Boundary Issues: No

27. Rights: No

28. Relevant Literature

http://www.uncork.com.au/

http://www.museum.upenn.edu/new/exhibits/online_exhibits/wine/wineintro.html

http://www.winewalkabout.com/ww/wine_regions/

http://www.winetitles.com.au/awol/overview/world.asp

http://europa.eu.int/comm/external_relations/chile/assoc_agr/9anx_v.pdf

http://europa.eu.int/comm/external_relations/australia/intro/

http://www.wfa.org.au/PDF/press10.02.04.pdf

http://www.abs.gov.au/ausstats/abs@.nsf/Lookup/9C2B3279B16258F0CA2568A9001393C7

http://www.dfat.gov.au/ip/aus_joint_paper.pdf

http://www.wfa.org.au/PDF/press10.02.04.pdf

http://www.winedesign.com.au/winenews.htmb

Books

Johnson H & Robinson J. The World Atlas of Wine . Mitchell Beazley; 5th Rev edition, 2001.

Robinson Jancis. The Oxford Companion to Wine . Oxford University Press, 1999.

Stevenson, Tom. New Sotheby’s Wine Encyclopedia: A Comprehensive Reference Guide to the Wines of the World . DK Publishing Inc, 2001.

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Site Author, David Jonathan Curtis: David Jonathan Curtis, a seasoned professional in his fifth decade of bartending and bar management, began his career in Midtown Manhattan, NY, tending and managing bars before diving into Manhattan’s bustling nightlife scene. Over the years, he has mastered high-volume, high-pressure bartending as the lead bartender in both iconic Midtown clubs and Wall Street bars, generating over $1,350,000.00 annually in personal drink sales. He has since extended his expertise to establishments in Georgia and now Tampa, Florida. David’s roles as a Bartending Instructor at the American Bartending School in Tampa, while maintaining a second job bartending, and his years experience of managing bars, and working as a Brand Ambassador along with his extensive professional library of over 1,000 bartending books, highlight his dedication to continually refining his craft. He holds a diploma in Bar Management and is BarSmarts certified by Pernod Ricard.

1. Once again, as with my post entitled Grenadine, this was found on an American university website. It’s older but highly interesting, well researched background information that the college or university never should have deleted. As a webmaster it’s my guess everyone who knew about it moved on (faculty, student body, even webmaster – and as this was all HTML done with what looks to have been Microsoft’s web publisher at the time, it was abandoned rather than spending a few years porting everything over to WordPress, reformatting everything and fixing all the broken links.[↩]