Trade deficit shrinking! (in wine at least)
One of my Italian friends told me several years ago that “for export” on Italian foodstuffs generally means “lower quality.” Exaggeration to be sure, but his point was that nobody in Italy eats spinach pasta.
What are Americans dumping on the wine export markets? Why, Blossom Hill, Gallo, and Fetzer.
While the weak dollar policy has not yet tamed trade deficits for the economy at large, it is somehow working for the wine industry. Exports to Europe are up and total exports are at a high, now standing a mere 42% below the quantity of wine imported. (story)
Italy, which has one of the highest per capita consumption rates, has been developing a taste for American wine. With 33,000 cases of American wine imported in 2003, in the first 11 months of 2004 they have imported 638,000 cases. I’d better call my friend and see what “American wine” means in Italy.
On January 26th, 2005 at 9:31 pm ,GrumbleGrouch wrote:
“… ‘for export’ on Italian foodstuffs generally means ‘lower
quality'” reminds me that when Californians were just learning how to
make wine, they exported Gallo and kept their small quantities of
really good stuff for Californians to drink. So I have no doubt that
your Italian friend spoke truth. If Italians are drinking more American
wine, it might mean we’re “dumping” it.