The Senate will soon consider a new agreement that would boost wine sector jobs.
The Winemakers’ Federation of Australia (WFA) said the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (TPP-11) would have real and immediate benefits for the wine sector.
“At a time when farmers around the country are experiencing crippling drought, deals like TPP-11 give hope for a long-term sustainable future,” it said.
The WFA said the agreement passed the House of Representatives on 17 September with support from both major parties.
The WFA supports TPP-11 as a driver of agricultural exports, greater prosperity and well-being and jobs in rural and regional Australia.
“Australia will gain a competitive advantage, beyond that obtained through current bilateral agreements, in four markets: Canada, Malaysia, Mexico and Peru,” it said.
“Particularly exciting is the opportunity presented in Mexico, which maintains a 20 per cent tariff on Australian wine imports.
“The removal of this tariff will level the playing field for Australia’s wine producers, who are currently competing at a disadvantage against wines from Chile and the United States.”
The WFA said TPP-11 would drive further growth in Canada, Australia’s fourth largest export market.
“It will enable us to capitalise on the increased marketing investment in North America that has come from the Australian government’s $50 million Export and Regional Wine Support Package,” it said.
The agreement makes a significant effort to address Non-Tariff Barriers (NTBs).
“Non-tariff barriers are the biggest problem wine exporters face, adding unnecessary cost and complexity to operating internationally,” the WFA said.
“This agreement has a specific technical annex dealing with wine and spirits that will reduce current barriers around compositional issues and labelling and insure against the creation of new barriers in these areas.”
