Washington, Oct 8 — A US lawmaker has urged the Trump administration to open India's market to California wines as American growers struggle with declining domestic consumption, restricted access to Canada and federal regulations they say favour imported products.
Republican Congressman James Gallagher of California has asked US Trade Representative Jamieson Greer to prioritise India and Vietnam as potential export markets while addressing domestic policies that growers say put American grapes at a disadvantage.
In a letter released Thursday, Gallagher said California's wine industry was facing mounting pressure from weakening demand and uncertainty over international trade.
“Industry leaders have identified countries such as India and Vietnam as promising high-growth markets, but the barrier to entry is still high due to ongoing tariff negotiations,” Gallagher wrote.
He urged USTR to prioritise opening those markets while working to restore access to Canada, where market opportunities for American wines have been severely reduced.
The request comes as India and the United States pursue negotiations aimed at expanding bilateral trade and reducing barriers to market access.
“North State growers produce some of the best wine grapes in the world, but right now they are competing in a market where federal policy can actually make it easier to use foreign products than grapes grown here at home,” Gallagher said.
“We need to make sure our trade policies are working for American growers while opening new markets where California wine can compete and win.”
Gallagher also called for changes to US wine-labelling regulations that allow products marketed as American wines to contain imported ingredients.
Under existing Alcohol and Tobacco Tax and Trade Bureau rules, wine labelled “United States” or “American” must contain at least 75 per cent American-grown agricultural products and be fully finished in the United States.
The remaining 25 per cent can come from foreign-grown products without disclosing their origin on the label.
Gallagher said growers believe the provision undermines demand for California grapes, puts downward pressure on prices and makes it difficult for consumers to distinguish wines made entirely from American agricultural products from those containing imported ingredients.
He asked USTR to work with the Treasury Department and the Alcohol and Tobacco Tax and Trade Bureau to review the regulation.
The congressman also raised concerns about federal duty drawback provisions affecting imported bulk wine.
Under certain circumstances, federal excise taxes paid on imported wine can be refunded when substituted wine is exported, even when the exported product did not carry an equivalent excise-tax burden.
Gallagher said the practice could make imported bulk wine more economically attractive than purchasing domestically produced wine or California-grown grapes.
He urged USTR to support US Customs and Border Protection in reviewing the arrangement and its impact on American producers.
The letter separately called for scrutiny of bulk products imported from Canada that do not meet the US definition of wine but receive customs and tax treatment applicable to wine.
Natalie Collins, president of the California Association of Winegrape Growers, welcomed Gallagher's intervention.
“California winegrape growers are facing an incredibly difficult market, and federal policies should not make it harder for American-grown grapes to compete,” Collins said.
Gallagher said Washington should address the concerns as the 2026 harvest draws to a close.
“California growers don’t need Washington making a tough market even tougher,” he said.
“We should be looking for ways to give them a fair shot here at home and more opportunities to sell American wine around the world.”