At the end the 17th century, when the French king Luis XIV said, having tasted his first Tokay wine, the famous and unique "Vinum Regum - Rex vinorum" (Wine of kings, king of wines), none of his court servants would ever dream that some two hundred years later the praised wine would become a subject of diplomatic struggle between the former Czecho-Slovakia and Hungary, and later between Slovakia and Hungary.

The story started in 1964, when the former ČSSR Ministry of Foreign Affairs decided to export a small shipment of the "Czechoslovak" Tokay wines to the Austrian Mossmer company. The reason for export was an overproduction of Tokay wines in Czecho-Slovakia, as well as intentions towards an expansion of the overall acreage of the Slovak portion of the Tokay growing region. The Austrian dealer introduced the wine on the marked under the designation Mária Therézia Tokayer Szamorodni. The Austrian Institute for Food Control did not approve its sale under the designation "natural", but only as desert wine. When the former representatives of the Bratislava Wine Works state company investigated the reasons of such unexpected change, they realised that the Institute's decision was influenced by lobbying by the Hungarian producers of Tokay wines. The Hungarians opposed against a designation of the Czechoslovak Tokay area wines under the name Tokay. Wines with this trade name had until 1964 been exported only by Hungary. A number of international negotiations took place in the period 1965 - 1967 to settle the issue of exporting "Czechoslovak" Tokay wines. Not only the central foreign trade companies Koospol Prague and Monimpex Budapest took place in these negotiations, but also the Bratislava Wine Works and Pilsen Brewery.

The attendance of the Pilsen Brewery was needed to settle the issue of the Hungarian beer produced who used a Raderberger Pilsner trade-mark. Subsequent development of the negotiations showed that the Czech Koospol placed more emphasis on the Pilsner Beer due to higher production and export volumes and prices than on the Tokay wines. This fact had an adverse effect especially on the agreement concluded between Koospol and Monimpex on January 12 1967, binding the Hungarian partner to give up the "Pilsner" trade-mark against a permission to export not more than one thousand hectolitres of Tokay wines, exclusively to Hungary. Under these conditions Czechoslovakia had exported 21,5 hectolitres of Tokay wine to Hungary to be subsequently sold under Hungarian designation. There are speculations that this volume was twice as high. The explanation for its high demand is the sugar level up to 25 grams per litre (the Hungarian standard stipulates 10 grams as the lowest limit). Unsupported opinions claim that the Hungarian Tokay wine producers had been diluting the Slovak wine, having gained 60, and later 84 USD for each hectolitre of wine purchased from Slovakia. Validity of this agreement was mutually terminated on July 4 1990. Immediately afterwards the struggle to win the Tokay trademark, claimed on historical and legal grounds both by Slovakia (earlier Czecho-Slovakia) and Hungary flamed up again.

POST-TRIANON WINE TRAUMA

The overall area of the Tokay growing area, ranging from the towns of Szerencs, Tarcal, Abaújszántó, Tokay, Tolcsva in the north Hungary to the south Slovak villages covers 8,6 hectares. In 1918 this region was artificially split by a Czecho-Slovak - Hungarian state border. During the World War II, after the infamous Vienna arbitrary proceedings this territory was administrated solely by Hungary. At the root of this long-lasting dispute is the reluctance of the Hungarian party to acknowledge officially the trademark, quality and first of all the existence of the Slovak part of the Tokay territory. This area has been defined by the Slovak National Council act 4/1959 "On development of the Tokay viniculture region" and the subsequent Regulation 79 issued by the former Commission for Agriculture and Forestry in April 1959. Compliant with this the Slovak part of the Tokay growing region covers fields across seven villages of the Trebišov district (Malá Tŕňa, Veľká Tŕňa, Čerhov, Slovenské Nové Mesto, Viničky, Veľká Bara and Černochov) with the acreage of 698,10 hectares.

The Hungarians claim, that in accordance with the law article XLVII of the former Historic Hungary Ministry of Tillage of 1908 (the first official definition of the Tokay growing region) the Slovak part of the area comprises only three villages - Slovenské Nové Mesto, Malá Tŕňa and Viničky, i.e. 178 hectares of vineyards. This article of law was in force in Hungary until 1959, and in the former Czecho-Slovakia it was substituted by state standards in 1954.

"Throughout the existence of the first Czechoslovak Republic these three villages were fully recognised by the Hungarian administration as part of the Tokay region. Until the Beneš Declarations a number of vineyards in this area belonged to Hungarian church and Hungarian citizens, who had no obstacles in transporting the crops and Tokay wine to Hungary", informs Milan Kakaš, a Galafruit ltd. wine production manager in Malá Tŕňa. Since 1924 the State Research Viniculture Station in Malá Tŕňa pursued a long-term plan of a subsequent extension of the Slovak part of the Tokay growing area. Yet in 1990 the Station was abolished. During the occupation of the southern Slovakia this area was under the administration of Budapest, that did not oppose research and plantation of new Tokay varieties. Similarly it did not oppose the after-war extension of the "historical" Hungarian part either. The Hungarian Republic presents itself on the international forum as the world sole legitimate Tokay wine producer. Ironically, it was not until 1970 when the Geneva International Agency for Intellectual Rights Protection registered the trade-mark of Hungarian wines of the Tokay provenance designated as Tokaj, Tokay and Tokayer. This happened three years after taking a clever advantage of insufficient registration of the "Czechoslovak" wines of the Tokay provenance registered only as "Tokay wines, Tokayer Samorodner".

From the international point of view the states and companies can export their products only if one of three basic conditions has been met: either in conformity with bilateral international agreements, recognition of the declaration on provenance protection or recognition of the registered trade-mark protection. Hungary, having exported 50 thousand hectolitres of Tokay wines into 37 states last year, insists further on Slovakia waiving the Tokay wines exports under the "Tokay, Tokay selection or Tokayer Samorodner", and demands deletion of any designation with relation to the Tokay area.

HUNGARY / EU AGREEMENT

Hungary applied a move of a similar shrewdness to that of the trade mark registration also in November 1993 in entering a contract with EU on mutual protection and inspection of the wine registered trade-marks. According to the joint declaration, the EU market can be supplied by Tokay wines exclusively by Hungary.

"Both parties ignored the Slovak Tokay wines producers and the fact that we have exported Tokay wines to Hungary for 23 years. Yet the internationally protected designation "Tokay wine from the Slovak region", registered in Geneva in 1972, was accepted by France, Portugal and Italy, countries of EU significance", claims Pavel Eftimov, a head of the Galafruit ltd. executive in Malá Tŕňa. This company has become after the liquidation of the monopoly state producer Tokay, Slovenské Nové Mesto, the Slovakia largest Tokay wines grower and producer.

"The main reason for Hungary to sign this EU agreement is to prevent production and sale of wines with a Tokay trade-mark. The Tokay wines are conceived as a Hungarian national product and the name Tokay is derived from the town at the centre of the Hungarian Tokay wine growing region. This agreement is for us a guarantee that neither France, Italy, United States or Australia will be able to sell wines within the Union with a Tokay trade-mark", says Ferenc Marcinkó, a marketing director of the Tokay Kereskedoház Rt. public liability company in Sátoraljaújhelyi.

This company, that celebrated its 50th anniversary last year, is the Hungary largest Tokay wine producer and exporter. Its annual production is 70 to 80 thousand hectolitres of wine, 50 % of which is exported.

"While there are trends in Slovakia to expand the Slovak Tokay growing region, the Hungarian growing acreage has dropped by two thousand hectares. According to the new viniculture act the Tokay region covers 5000 hectares and it is divided into three quality categories. This act was passed to improve the quality of the Tokay wine production and to prevent artificial expansion of the region", says Rozgonyi J. Sándor, a business manager and deputy to the Tokay Kereskedoház Rt. general manager.

Slovakia cannot compete with Hungary in the volume of the produced Tokay wines. The outlined vineyards can yield annually no more than 20 thousand hectolitres of wine. Slovakia can compete with its southern neighbour producing ten times more wines only in quality, as confirmed by awards at international vintner's competitions.

WILL THE DISPUTE BE RESOLVED BY JOINT PRODUCTION?

The Tokay wines dispute development escalated in a new tension in 1997, when Slovakia applied officially in Brussels for a recognition of Slovak Tokay wines as part of the SR / EU agreement in stage of preparation on mutual protection and inspection of the wine trade-mark. Hungary raised a sharp protest against this request of the Slovak Republic and the launch of the negotiations with Slovakia. The negotiations have not been completed yet and it is rather difficult to say that they would end up successfully for the Slovak party.

In its reasoning addressed to the European Commission the Hungarian party points out several important facts that should prevent a recognition of the Slovak Tokay wines: regional extension of the growing area, absence of a separate act on Slovak Tokay growing region, deviations in sugar and acid contents of the wines, failure in numbering the produced bottles, non-compliance with the traditional production technology, and a missing independent control of the wine quality control.

"Another inconsistency is in Hungary not producing the two-tub and Slovakia the six-tub Tokay wines. The Slovak two-tub wine corresponds approximately to the Hungarian Tokay szamorodni. This created much confusion and major market problems. Another disturbing moment is in Slovakia producing small amounts of the Tokay wines", adds Rozgonyi J. Sándor. The latest instructions from Brussels indicate that the trade-mark issue should be settled between the Slovaks and Hungarians themselves.

According to Pavel Eftimov, the Galafruit head of executive, the first negotiations between the Slovak and Hungarian Tokay wine producers could already take place this coming autumn. The Slovak party should be represented by the Tokay Winegrowers' Union, the Hungarian party by representatives of twenty-eight major Tokay wine growers and dealers.

"We expect to reach an agreement and settle the problem of Slovak Tokay wine production and exports also to the EU countries. We won't stop producing and exporting the wine even if the agreement is not reached, and will strive on to find other solutions", says Pavel Eftimov. If the Slovak Tokay wine growers suspended the use of the Tokay designation and stopped exports under this trade-mark, that would prove to be the most acceptable solution for the Hungarians.

"We could resolve this problem also in buying out the entire Slovak Tokay wine production. But I can well imagine also a joint production and marketing of the Slovak-Hungarian Tokay wines within a joint venture. That I believe would be the best solution", concludes Rozgonyi J. Sándor, business manager and deputy director to the Tokay Kereskedoház Rt.

Slovak Trade FORUM