Wine Law
PROFESSIONAL ORGANISATION OF ARGENTINE VITICULTURE 403 e) the severe adjustments – blockages, proration and abolitions, with which more than 30% of the cultivated land was lost. IV. THE FUNDAMENTAL CONSENSUS The evolution in national economic policies allowed the progressive improvement of three fundamental measures assumed by public entities. These measures accomplished a remarkable consensus between the industry’s representative entities, willing to overcome the economic issues, both in the conceptual regulations and the actual instruments, notwithstanding the continuous ideological debate in the politic area. In that respect, it is worth mentioning: a) Producers Integration 10 : in 1987, the province of Mendoza ordered the restructuring of the State Winery (GIOL) and the non-consolidation of monopolies or oligopolies. For this reason, the assets were assigned to more than 5000 producers distributed in 25 cooperatives around all the oases in the province. The corporate management of this cooperative field today integrates 35% of the national chamber, and it is one of the main factors of stabilisation; b) Deregulation 11 : in 1991, the nation ordered the liberation of wine production and commerce in the entire territory. Furthermore, modalities of blockage were eliminated, dates of dispatch for internal consumption were liberated and the plantation of new vineyards was allowed. The faculties of the INV were limited only to the inspection or control of the authenticity of the viticulture products, establishing that, under no circumstances, it could interfere, regulate or modify the free market, thus eliminating its Board of Directors; c) Diversification 12 : in 1994, the main viticulture provinces, Mendoza and San Juan, promoted the grape juice elaboration by lowering taxes, which set a pattern of diversification associated to the balance of stocks. This was meant to fix the relative prices of the primary production, which are marked by the variation of the prices belonging to the base of the pyramid, from which we deduce that there are no “non-surplus” varieries. It is 10 Decree of Executive Power of the Province of Mendoza 3345/88, dictated based on art. 9 of Law 2301. 11 Decree of necessity and urgency 2284/91, then ratified by the Congress. 12 Agreement Mendoza San Juan (Law 6216/1994), together with the Tratado Interprovincial para la Diversificacion Viticola (Interprovincial Treaty for the Diversification of Wine) (Ley Nº 9061/2018).
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