Trade Panel Refuses to Act on Wine Imports

WASHINGTON — Wineries and grape growers from California and other states failed Monday in a second bid to convince U.S. trade regulators that unfair European competition has inflicted “catastrophic” losses on the American wine industry.

The International Trade Commission unanimously rejected arguments that the American wine industry has been forced into the red to match prices of government-subsidized wines from Italy, France and West Germany.

The 5-0 decision means that the commission will not recommend that President Reagan impose any retaliatory measures, such as tariffs or limits on imports, which would reduce competition from the three nations.

The American Grape Growers Alliance for Fair Trade, a California-based coalition of U.S. wineries and grape growers, had charged that the three European nations pumped $875 million in subsidies into the production of ordinary table wines. The subsidies allowed many French and German table wines to be sold in the United States “at less than half the cost of production,” the alliance had argued.

According to the commission, Italy has captured 14% of the U.S. table wine market, while France controls 6% and West Germany 4%.

Aram Kinosian, head of the California Assn. of Winegrape Growers, blamed foreign competition for the $331-million loss that he said California growers incurred last year.

“Unless something is done to stop subsidized foreign wine from capturing more of our market,” Kinosian told the commission, “we will continue to suffer catastrophic economic losses.”

In rejecting the complaint, commission Chairwoman Paula Stern said that fierce competition among domestic wineries--and not the threat of subsidized foreign table wines--appears to be responsible for most of the U.S. industry’s losses. The commission reached a similar conclusion when it unanimously rejected the growers’ first complaint in March, 1984.

In Washington, Joseph Vicario, an attorney for the U.S. grape growers, said the commission’s second ruling would be appealed.

“Today they voted against us for the second time,” Vicario said. “We’ll be working in the courts to get a speedy reversal.”