New Free Trade Deal With The EU Is Positive For Winegrowers

New Zealand Winegrowers is pleased that wine exporters will benefit from the announcement of a new free trade deal with the European Union (EU).

“Our understanding is that the agreement is positive for winegrowers exporting to the EU. It will help remove technical barriers to trade, and reduce burdens from certification and labelling requirements in a dedicated Wine Annex. It will also support future growth in the market, and encourage exporters to focus on the EU,” says Philip Gregan, CEO of New Zealand Winegrowers.

The EU is a significant export market for New Zealand wine, with over 20 million litres of wine exported, valued at over $150 million, over the past 12 months.

“The EU’s complex rules can make market access difficult for winegrowers, so it is encouraging to see some easing of restrictions in this area. We look forward to publication of the full text of the agreement, so that we can examine the agreement in more detail.”

Under the terms of the agreement, tariffs on NZ wine will be lifted as soon as it takes effect. The New Zealand Government has estimated this will save NZ wine exporters approximately $5.5million annually. The removal of technical barriers to trade will also reduce other direct and indirect costs of producing and exporting wine to the EU.

The parties will have also agreed to protect each other’s geographical indications (GIs). New Zealand’s GIs for wine (such as Marlborough, Central Otago and Hawke’s Bay) will be protected in the EU for the first time. Some historic wine names such as port and sherry will be phased out in New Zealand over time, as they have been in many other countries that have entered into free trade agreements with the EU.

“We thank Ministers and officials for their support and their ongoing engagement in these negotiations, which at times have been challenging.”

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