Australian Grape and Wine (AGW) congratulated the Australian Government last month on its ratification of Free Trade Agreements (FTAs) with Peru, Hong Kong and Indonesia.
The Australia-Hong Kong Free Trade Agreement (A-HKFTA) and Peru-Australia Free Trade Agreement (PAFTA) will enter into force on 17 January and 11 February 2020 respectively.
The Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) will come into force 60 days after Indonesia formally advises Australia it has ratified the agreement.
Following ratification, Australian wine businesses will be able to take advantage of their benefits.
AGW chief executive, Tony Battaglene, said, “The Australian wine sector is extremely supportive of trade liberalisation, and progressing these three FTAs presents a range of direct and indirect opportunities for the sector”.
“The three trade agreements provide us with a strategic foothold in the growth regions of South East Asia and South America,” he continued.
“Australian wine businesses will also benefit from the inclusion of a specific wine Annex, in both the PAFTA and the A-HKFTA, which helps to streamline technical requirements, including labelling and certification.
“It is great to see Free Trade Agreements incorporating technical wine related provisions. These provisions go a long way towards providing greater certainty of market access and reducing the cost of doing business.”
Australian wine businesses exported more than $100 million worth of wine to Hong Kong in 2018/19 and maintained a strong market share at high price points, particularly for red wines.
While Australian wine exports to Indonesia ($7.2million) and Peru ($80,000) are much smaller in volume, they remain at higher price points with Peru growing to over $15 per litre over the same period.
“The FTAs with Indonesia and Peru will open up their markets for wine trade and provide a platform for small and medium wine companies to explore niche markets and diversify their offerings,” added Battaglene.