The thirdpartusespartialequilibriumanalysis to explain themechanism, effectforimport countriesundersmall country's conditionandcountryeffectofgreenstandard.
Moreover, if the wine tasted good for the price point, Gallo probably assumed that at least some merlot and syrah were blended in (small-percentage additions such as these are standard practice, and there are legal limits that vary by country of origin).