Rio Frio, Portugal, Sep 5 (AP) - A Boost for US Winemakers: Cork Exemption from Tariffs
US winemakers have a reason to rejoice: the corks they use are no longer subject to tariffs. Cork is derived from the spongy bark of the cork oak tree, predominantly grown and harvested in the Mediterranean region. A recent trade agreement between the United States and the European Union identified cork as an “unavailable natural product,” sparing it from a 15% US tariff imposed on most EU products.
The exemption was critical for Portugal, the world’s largest cork producer, responsible for around half of global cork production. Portuguese diplomats were instrumental in negotiating the carve-out with both US and EU officials. Patrick Spencer, executive director of the US-based Natural Cork Council, highlighted the origins of cork to US trade authorities, fervently advocating for the exemption. The Wine Institute, representing California vintners, also played a role in securing this special status.
Spencer expressed his delight when the US-EU agreement summary in August mentioned the cork exemption. “It was a great day in our neighborhood,” said Spencer, dubbing himself a “cork dork."
More than Just Cork
It's uncertain whether other natural products will benefit from similar tariff exemptions in future trade agreements. The US Department of Commerce and the White House did not respond to inquiries about potential future exemptions.
Additionally, the fate of the tariffs introduced by President Donald Trump on imports from the EU and other nations remains uncertain. Recently, a US appeals court ruled against Trump's authority to impose these sweeping tariffs, though they remain in place pending an appeal to the US Supreme Court. Cork's exemption might signal additional exceptions in the future. US Commerce Secretary Howard Lutnick suggested that other natural products like mangoes or cocoa might see tariff relief in an interview in July.
US Dependence on Portuguese Cork
The United States is the second-largest market for Portuguese cork after France. In 2023, the US imported $241 million worth of cork from Portugal, with over 70% of it being used as stoppers for wine, spirits, olive oil, and other liquids, according to the Natural Cork Council.
Cork’s applications extend beyond stoppers. It is used by NASA and SpaceX for thermal protection on rockets and as infill for sports fields and in concrete on airport runways to lessen landing impacts.
Despite California's Mediterranean-like climate, the US has not developed a cork industry. Efforts during World War II to establish one fizzled out post-war. The challenge is the long maturation period of cork trees, which take 25 years for the first bark harvest, and the initial yield usually lacks quality. Subsequent bark growth takes about nine years.
"Americans are not patient enough to wait for a tree that takes 25 years to give its first harvest," remarked Antonio Amorim, CEO of Portugal's Corticeira Amorim, a leading cork company.
Cork harvesting requires specialized skills, as improper cutting can kill the tree. Workers in this field are Europe’s highest-paid agricultural laborers, Spencer noted.
Traditional Harvesting Methods
Amorim, exporting cork to over 100 countries, manages more than 20 million cork trees across 700,000 hectares (1.7 million acres) of woodland. During a recent visit to Amorim’s Herdade de Rio Frio farm, 40 kilometers southeast of Lisbon, workers methodically harvested cork amidst the thin grass and scattered trees.
The serene woods resonated with gentle axe thuds as workers carefully peeled off the bark, ensuring the tree was unharmed. This traditional method has been practiced in Portugal for over 200 years. Workers threw the feather-light slabs onto trucks, destined for factories where they’d be converted into stoppers.
A worker marked the stripped trees with a “5,” indicating their bark was harvested in 2025. The enduring cork oaks of Herdade de Rio Frio, native to Portugal, endure droughts and high summer temperatures, having been planted over a century ago.
The Appeal of Cork
Cork’s sustainable harvesting and biodegradability have encouraged US winemakers to return to using cork stoppers after experiments with aluminum, plastic, and glass closures. In 2010, 53% of premium US wines had cork closures, which increased to 64.5% by 2022, according to the Natural Cork Council.
Cork taint, causing an undesirable taste in wine due to a fungus, was a significant issue in the 1990s. This led vintners to explore alternatives like aluminum screw caps, mentioned Andrew Waterhouse, a chemist and director of the Robert Mondavi Institute of Wine and Food Science at the University of California, Davis. The cork industry's improvements and the wine industry’s technological advancements, like screw caps that simulate cork’s oxygen permeability, have mitigated these issues.
Many wineries, including Trump Winery in Virginia, now use both screw caps and natural corks. Waterhouse noted screw caps are more suitable for wines not intended to age, like rosé, whereas cork is preferred for aging wines.
"If you say, 'Has this wine aged properly?' you really mean, 'Was it in a glass bottle with a cork seal in a cool cellar?' Under any other conditions, it didn't age the same," Waterhouse said. "We're always trapped by history." (AP) SKS RD RD
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