US Trade Representative criticizes EU restrictions on wine labels
The problem is multi-faceted, and not so simple.
On the one hand, while historically such terms were (IMHO) valid in their day, few reasons exist for their continued use today. But while it was easy to ban semi-generic terms like "Chablis," "Burgundy," and "Champagne" on American wine labels, it's more difficult to find acceptable substitutes for wine terms such as "Port" and "Sherry." But if we can find them, I'm all for banning these as well.
On the other hand, the EU regulators do tend to get carried away . . . to try to prohibit terms like "Chateau" and "reserve" is ludicrous!