Image provided by: University of Oregon Libraries; Eugene, OR
About The daily Astorian. (Astoria, Or.) 1961-current | View Entire Issue (Jan. 16, 2020)
A3 THE ASTORIAN • THURSDAY, JANUARY 16, 2020 Winemakers fear tariffs could crush industry A shot toward European imports By SIERRA DAWN McCLAIN Capital Press Most years, January is a month of glory for the wine industry — celebrating the harvest and holiday sales of the previous year and gear- ing up for the next season. But for U.S. winemakers, this January is a time of panic as the industry girds itself for the Trump administration’s threat to impose 100% tariffs on European wine imports. It may appear that a duty on European wines would sweep away competition for the domestic industry and lift U.S. producers’ prof- its. But American wine pro- ducers say that, rather than helping them, an import tax could devastate their indus- try through damaging the overall wine-drinking culture and putting distributors out of business. Although the U.S. Trade Representative has not issued a defi nite timeline yet, the tar- iffs could be imposed as early as February. “It seems like almost everybody’s worried about this,” said Jason Haas, gen- eral manager of Tablas Creek Farm, a vineyard in Paso Robles, California. According to the Wine and Spirits Wholesalers of America, a 100% tariff on French sparkling wines alone could dismantle an estimated 17,000 U.S. jobs. Kiona Vineyards and Winery Junior Flores handles wine at Kiona Vineyards and Winery in Washington state. Direct importers would be hit hardest, but industry lead- ers from winegrowers’ asso- ciations in Oregon, Wash- ington state and California said an entire web of busi- nesses and people connected to European wine would be impacted — including vine- yards and wineries, distrib- utors, restaurants and bars, retail shops, hospitality busi- nesses, manufacturers, trans- portation workers and dock workers. The tariffs are part of U.S. retaliation against the Euro- pean Union in response to subsidies it gives to Air- bus, a European aerospace company. The Trump administra- tion has also threatened to impose a separate 100% tar- iff on Champagne and other products to punish France for imposing a tax on American technology companies. “This is a no-win propo- sition,” said Jana McKamey, executive director of the Ore- gon Winegrowers Associa- tion. “It creates chaos in the marketplace and reinforces hostile trading in the global ecosystem. Wine should not be used as a retaliatory pawn to unrelated industries.” Not the fi rst This isn’t the fi rst tariff to jolt the industry. According to McKamey, the U.S. wine industry faced tariffs with Canada in 2015 and has grap- pled with a fermenting tar- iff dispute with China since 2018. In October, the Trump administration imposed a 25% tariff on many European wines. Most U.S. wine busi- nesses cut margins and raised prices as little as possible. But at 100%, experts say, that’s no longer sustainable. The tariffs will hurt U.S. consumers, making popular wines unavailable and forc- ing consumers to search for alternatives, said Sara Hig- gins, spokeswoman for the Washington Winegrowers Association. Good wine, Higgins explained, is a product of a place and culture and is not interchangeable. “Terroir,” a popular wine term, describes how a partic- ular soil, climate, terrain and tradition affect fl avor. If, for example, Burgundy doubles in price, consumers will not be able to swap it for Oregon p inot noir and get the same experience. It is not the same wine. But it’s not just about per- sonal taste — trade law lit- erally dictates that certain wines may only come from the places after which they are named. Higgins said if prices cat- apulted, consumers would be more likely to look for substi- tutions to wine itself. “Wine doesn’t have the universal appeal of beer, at least not in the U.S.,” said JJ Williams, director of oper- ations at Kiona Vineyard and Winery in Benton City, Washington. “If someone likes to drink a Red Moun- tain cabernet, it’s not their starting point. A lot of people start out with high-end Euro- pean offerings and go down the rabbit hole into domes- tic wines. When people drink less European wine, they also drink less domestic wine. And that hurts us.” California vineyard man- ager Haas shares this con- cern. “Looking at the big- ger picture,” he said, “I think this has the potential to have a major disruptive impact on the United States as a drink- ing culture.” The crack in the glass lies in U.S. wine law. Three-tier system After repealing Prohibi- tion in 1933, the U.S. set up a three-tier system for alcohol distribution, requiring pro- ducers to sell products only to distributors, which then sell to retailers. Although laws vary state to state, the three- tier system entrenches the need for producers to work with licensed distributors. The trouble is that most distributors rely heavily on international imports, explained Haas, partly because of the popularity of European wines and partly because domestic produc- ers can’t meet the demand. If faced with a 100% tax on imports, many distributors would face enormous losses or close. “If my distributor partners are struggling, then I’m going to struggle, too,” said Wash- ington vineyard director Wil- liams. “If I’m working with a mom-and-pop distributor, but 40% of their viability is based on importing high-end wines, and all that disappears, there’s no way that’s good for me.” Wine industry leaders from Oregon, California and Washington state say they have reached out to lawmak- ers through phone calls, peti- tions, in-person visits and offi cial docket comments. Oregon Winegrowers Association’s McKamey said she encourages those in the wine industry — along with anyone who enjoys a good glass of wine — to reach out to their congressional delegations. “It takes a lot of time and effort to develop international relationships in the wine industry,” said McKamey. “It can all disintegrate in days with these trade issues.” Astoria Armory OK’d for window repairs By EDWARD STRATTON The Astorian The Astoria Historic Landmarks Commission again approved a window restoration at the Asto- ria Armory, which recently received an infusion of money as volunteers seek to fi x the building up. The Friends of the Asto- ria Armory, the nonprofi t overseeing the community center, plans to replace the large arched windows atop the high lamella roof, along with numerous rusted fi rst- fl oor windows. A small army of vol- unteers with the Friends, whose only employee has been Robyn Koustik, the community director, has been slowly refurbish- ing the venue, which once hosted major bands and events with thousands of attendees. They have developed a steady stream of events, such as semiweekly skate nights, amateur wrestling, birthday parties and other private rentals. The Armory also hosts a free Thanksgiv- ing dinner and other com- munity benefi ts. Regional lender Craft3 recently provided the Friends a $550,000 loan, $338,000 of it to purchase the building and the rest for building improvements. The Armory was approved for the improve- ments in 2016, when the loan from Craft3 was sched- uled to go through. But the OREGON CAPITAL Friends have encountered issues with asbestos, under- ground fuel tanks and lead abatement from a former military fi ring range in the basement. A storm in 2017 ripped off a portion of the building’s roof and le d to fl ooding indoors. “We’ve had everything but locusts,” joked Mike Davies, the nonprofi t’s president . The priorities are replac- ing the building’s rusting steel and rotting wood win- dows and improving bath- rooms, he said. The Friends plan to use aluminum frames. Along with the win- dows, the Friends hoped for approval to replace the front entrance to the build- ing on Exchange Street with a glass and aluminum door. The group also wants to replace a second-story door, awning and staircase on Duane Street. But commissioners on Tuesday wanted more detail on the replacements besides the windows. They voted to continue the hearing on those changes, giving the Friends time to create more detailed plans. Davies was OK with the continuance, since all the Friends can currently afford are the bathroom remodels and window replacements. Paul Davis, a board member with the nonprofi t , said the Armory isn’t a sexy project like the Liberty The- atre, but is deserving of support as the group tries to save the building from water intrusion. “We serve a large seg- ment of the community with things that they are not get- ting in other places in our community,” he said. Commissioners want the Friends to search for his- WANTED Alder and Maple Saw Logs & Standing Timber Northwest Hardwoods • Longview, WA Contact: John Anderson • 360-269-2500 GAME MEAT PROCESSING Debbie D’s will be at Cash & Carry in Warrenton at 10:00 a.m. every Saturday to pick up and deliver meat for processing. Hailey Hoff man/The Astorian The windows in the Astoria Armory are in need of restoration. Est. 1987 ANNUAL JANUARY SALE NOW THRU Jan 21 % 25 off Jan 22-30 20 lb. min • Each batch individual Please call or leave message by Friday so we know to expect you! DEBBIE D’S Jerky & Sausage Factory 2210 Main Avenue N. • Tillamook, OR • 503-842-2622 INSIDER Jan 31 st 1 DAY ONLY Clatsop Post 12 SWISS STEAK DINNER WITH ROASTED POTATOES AND VEGGIES Friday Jan. 17 TH 8.00 6PM “Karaoke Dave” For Grades 3 rd to 6 th ASTORIA AMERICAN LEGION Clatsop Post 12 1132 Exchange Street 503-325-5771 ADDITIONAL MARKDOWNS ON CLEARANCE 1116 Commercial, Astoria, OR 4 pm until gone $ 30 %off 35 %off Wednesday evenings from 6:30pm - 8pm Get the inside scoop on state government and politics! torical photos of the front entrance to replace it with similar materials. City Planner Barbara Fryer said she included the condition because the door might be the only source of ornamen- tation on the 1942 building. Sponsored by First Baptist Church of Astoria 349 7th St. • Astoria, Oregon • 503-325-1761 (503)325-5720 Follow us on Facebook & Instagram EXCLUDES FOOD, CONSIGNMENTS, LAYAWAY. LIMITED TO STOCK ON HAND
