Government approves FTAs with Peru, Hong Kong and Indonesia
The Australian Government has passed free trade agreements (FTAs) with Peru, Hong Kong and Indonesia.
“The Australian wine sector is extremely supportive of trade liberalisation and progressing these three FTAs presents a range of direct and indirect opportunities for the sector,” said Tony Battaglene, Australian Grape & Wine Chief Executive.
The Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) and the Australia-Hong Kong Free Trade Agreement (A-HKFTA) initiated in March 2019 and the Peru-Australia Free Trade Agreement (PAFTA) initiated in February 2018 are expected to enter into force in early 2020, enabling Australian businesses to take advantage of their benefits.
“The three trade agreements provide a strategic foothold in the growth regions of South East Asia and South America. Australian wine businesses will also benefit from the inclusion of a specific wine Annex in both the PAFTA and the A-HKFTA, which helps to streamline technical requirements, including labelling and certification,” Battaglene said.
The provisions facilitated by the FTAs provide certainty of market access; Australian wine businesses exported over $100 million worth of wine to Hong Kong in 2018/19 and maintained a strong market share at high price points, particularly for red wines. The FTAs with Indonesia and Peru are predicted to increase markets for wine trade and provide a platform for wine companies to diversify their holdings.
“It is great to see free trade agreements incorporating technical wine-related provisions. These provisions go a long way towards providing greater certainty of market access and reducing the cost of doing business,” Battaglene said.
Australian wine exports to Indonesia and Peru ($7.2 million and $80,000 respectively) remain at higher price points, with Peru increasing to $15 per litre in 2018/19.
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