Wine Law

18 varietal wine not covered by the PGO. Since both uses have been established in practice, the Commission sought a compromise solution. Ideally, the countries concerned should devise such compromises among themselves, in consultation with their winemakers in order best consider their interests. However, where disputes over locally cherished wines become politicised, negotiating an acceptable compromise is difficult and the politicians will prefer to leave the task to the Commission. In any case, it would be preferable to avoid such disputes by considering the possible conflicts already in the process of protecting of a geographical indication. In the case of Teran, for instance, it is questionable whether it really made sense for Slovenia to omit from its designation the direct geographical element “Karst”, which it originally contained and which very much limited the potential for homonymous names. On the other hand, one might ask whether it was really essential for Croatian wine producers to use the name “Teran” in whine labelling if an equivalent synonym “Istrijanac” for the same grape variety existed as well. The truth is, that the wine dispute between Slovenia and Croatia is not economically very relevant for any of the countries. The quantities of wine produced are relatively small and are consumed almost exclusively in both countries, where most consumers can distinguish very clearly between Slovenian and Croatian “Teran” wine. On the other hand, the PDO “Teran” is not well known internationally, so winemakers cannot benefit significantly from the opportunity to use it in wine exports. The General Court also noted in its judgment that it is by no means clear that the catastrophic predictions of the Republic of Slovenia concerning the economic consequences of the new labelling regime will come true 56 . However, we need to accept that geographical indications in general, and for wine in particular, are not just a legal and economic category, but are culturally rooted and deeply connected with local identity, so heightened emotions are common in disputes concerning such designations. Consequently, the adjudication of these disputes cannot unfold in a cold and mechanical manner but must show some understanding of the emotional elements and conflicting interests in order to find a workable compromise. 56 Recital 204 of the judgment in case T-626/17.