Winemakers toast trade deal
The Margaret River wine industry could be set to thrive with the end of 15 per cent Japanese import tariffs over the next seven years.
More than 150 wine producers in the region will see a decrease in export tariffs to Japan, following free trade agreement negotiations expected to be signed in June when Japanese Prime Minister Shinzo Abe makes a trip to Australia.
Winemakers are expected to benefit from both agreements, with tariffs on bottled, sparkling and bulk wine exported to Japan to decrease by equal annual instalments each year of the deal, starting at 13.3 per cent, while tariffs on wine imported to South Korea will end immediately.
Margaret River Wine Industry Association chief executive Nick Power said he could not fully respond to inquiries about the agreement until he had seen it.
However, he said anything that opened doors to trade was a positive, not only for the wine industry but for many industries in Australia.
The agreement with Japan means Australian wine producers, which export about 9.4 million litres of wine to the country annually, will now compete with rival exporter Chile, which struck a similar agreement to eliminate tariffs over 12 years.
Trade and Investment Minister Andrew Robb said tariff elimination was something he was also striving for in agreement negotiations with China.
“For growers and winemakers in the South West, these outcomes present a significant win and will put us in an ultracompetitive position with other wine exporters, ” he said.
“As export market opportunities grow, so does the industry, which means more jobs and even greater scope for innovation, with the economic benefits flowing to the region, the State and the national economy.”
Winemakers’ Federation of Australia president Tony D’Aloisio said the agreement was a critical part of developing export opportunities for Australian wine in Japan.
“(The) announcement builds on the recent successful negotiation of an agreement with Korea and provides further momentum for a similar agreement with China, ” he said.
“We welcome the government’s focus on the importance of these agreements to the Australian wine sector.”
Australia is the sixth-largest exporter of wine to Japan.
