Australian Grape & Wine (AGW) has congratulated the Federal Government on the ratification of the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) and the entry into force of the Peru-Australia Free Trade Agreement (PAFTA).

AGW chief executive Tony Battaglene said, “The Australian wine sector relies on export opportunities to provide strong, sustained growth and a profitable future for regional Australia”.

“Even where trade agreements do not provide immediate benefits to our sector, the improved trading relationship provides a boost to our economy.

“Australia requires a strong and diversified export wine sector to provide lasting economic benefits and these two agreements are important pieces in strengthening our networks with major trading partners.

“PAFTA provides a strategic foothold in the growth regions of South America, and Australian wine businesses will also benefit from the inclusion of a specific wine Annex, which helps to streamline technical requirements including labelling and certification.”

Australian wine exports to Indonesia are currently small in volume, but value is still significant at around $7.2million during 2018-2019.

While Australian wine exports to Peru are also small, it has seen an average value of price per litre grow to over $15 per litre over the same period.

“There has never been a better time for the Australian government to invest in growing our exports to build resilience and profitability into our agriculture sector and underpinning future economic growth. The ambitious free trade agenda is vital in achieving this objective,” Battaglene said.