LJUBLJANA: Slovenia said it was disappointed Wednesday that an EU court failed to back it in a wine dispute with Croatia, a neighbour with which relations have been sour for years.

The EU General Court (ECG) upheld an EU act that allows Croatian winemakers to use the name "Teran" under strict conditions, although it had been a protected designation for Slovenian vintners since Ljubljana joined the bloc in 2004.

"Slovenia regrets the Court's ruling, will examine it and decide about further steps," an agriculture ministry statement said.

Slovenia filed a lawsuit against the European Commission in 2017 claiming that its decision to allow Croatian winemakers to use the name was contrary to EU law and would have economic repercussions for Slovenian producers of Teran.

The grape grows in the red soils of Slovenia's rocky Karst plateau, but in May 2017, the European Commission allowed winemakers from Croatia's Istria peninsula to use the name for one of its wines under certain conditions.

Relations between Slovenia and Croatia, both formerly part of Yugoslavia, have been strained of late, in particular owing to a dispute over their maritime border in the Piran Bay.