Australia–India partnership an opportunity for winemakers

Australia and India have signed the interim Australia-India Economic Cooperation and Trade Agreement (AI ECTA), which will see the elimination or reduction of tariffs on certain Australian goods exported into India.

Australian Grape & Wine has welcomed the partnership, with wine having its tariffs reduced over a period of 10 years from 150% to 50% (if valued over $5 per bottle) or 150% to 25% (if valued over $15 per bottle). This agreement is seen as an opportunity for Australia’s wine industry to secure a foothold in the growing Indian market while allowing it to recover from the market loss in China.

“The agreement is beneficial for very high-value wine producers, many of which are small and medium-sized businesses. They will now have confidence to explore new opportunities in the Indian market as the staged tariff reductions are implemented,” said Tony Battaglene, Chief Executive of Australian Grape & Wine.

“We see this as the first step towards a mutually beneficial long-term relationship between the Australian and Indian grape and wine sectors,” Battaglene said. “We want to work with our Indian counterparts to share expertise and engage in technical and regulatory cooperation over the long term.

“We know this has been a tough negotiation and we thank the Australian Government for its efforts in landing this interim agreement. But we hope that the final agreement delivers more comprehensive market access for a larger share of our industry, and we’re looking forward to working with all parties — Australian and Indian — to help make this happen.”

The AI ECTA agreement, which the Australian Government hopes will give way to a full Australia-India Comprehensive Economic Cooperation Agreement, sees tariffs removed from many other products such as sheep meat, certain fruits and vegetables, infant formula, seafood and non-food items.

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