Trade Agreements
Australia is a party to two specific wine agreements, with another signed in January 2007 but not yet ratified. Wine trade is also affected by Australia’s free trade agreements with other countries and commitments entered into under the World Trade Organisation.
EU Agreement
The Agreement Between Australia and the European Community on Trade in Wine signed in Brussels on 1 December 2008 is a formal international agreement that regulates the trade in wine between Australia and the European Community. The Agreement comes into force on 1 September 2010 and replaces the 1994 Agreement between Australia and the European Community on Trade in Wine.
There are significant advantages to Australian producers and exporters in this agreement because all Australian winemaking techniques will now be accepted. There are much simpler requirements covering everything from labelling requirements and blending rules to alcohol levels and the display of Australian awards. In short, Australian wine producers will have to make fewer changes and concessions to sell their wine in the EC.
The Australian Wine and Brandy Corporation Act 1980 and Trade Marks Act 1995 have been amended so that Australia can meet its obligations. In addition, the Register of Protected Geographical Indications and Other Terms has been published and includes the full list of Europe's Geographical Indications and Traditional Expressions.
Australian winemakers will have better access to European markets through:
• European recognition of an additional 16 Australian winemaking techniques
• The introduction of simpler arrangements for the approval of winemaking techniques that may be developed in the future
• Simplified labelling requirements for Australian wine sold in European markets
• Protection within Europe for Australia’s 112 registered GIs
• Wholesalers will have five years to sell stock labelled with an EC GI and retailers will be able to sell all their stock
• Define the use of a number of quality terms used in the presentation and description of wine.
The European Union Export Market Guide on Winefacts has been updated to reflect the new requirements for Australia. The Department of Agriculture, Fisheries and Forestry have published a Frequently Asked Questions brochure.
Mutual Acceptance Agreement
Through the World Wine Trade Group (WWTG), Australia is a party to the Agreement on Mutual Acceptance of Oenological Practices (MAA), a multilateral treaty involving Australia, New Zealand, Chile, Argentina, Canada and the US. Under the terms of the MAA, wine made in accordance with Australia’s winemaking practices can be marketed in each signatory country whether or not those practices are legal in the importing country. The WWTG member countries signed a wine labelling agreement in Canberra in January 2007.
Labelling Agreement
In January 2007, the members of the World Wine Trade Group signed an Agreement on Requirements for Labelling. The labelling agreement allows for the possibility of a single 'global' label through eliminating mandatory placement requirements and introducing a 'single field of vision' concept. This concept will be satisfied when four common mandatory items (alcohol content, product name, volume statement and country of origin) are placed on the same label.
Australia is now in a position to ratify the Agreement following the amendment to state trade measurement legislation completed in all Australian states.
The World Wine Trade Group includes Argentina, Australia, Canada, Chile, New Zealand and the US.
An example of two permissible options under the new agreement is provided in this attachment.
Free Trade Agreements
Free Trade Agreements cover a range of goods and services, not just one specific product, and address both tariff issues and non-tariff barriers such as labelling, product standards and import certification. Australia currently has FTAs with Singapore, New Zealand, Thailand, the US and Chile, and FTAs are under negotiation or consideration with Malaysia, ASEAN, China, Japan, Korea, the Gulf Cooperation Council, India and Indonesia.
World Trade Organisation
The ultimate multi-lateral agreement is that involving all 148 members of the WTO. This organisation has been very effective in reducing tariff barriers around the world and also has developed a range of agreements relating to intellectual property, technical barriers to trade and quarantine restrictions. One of the major issues currently being addressed is the attempt by Europe to extend the extra level of protection afforded to wine and spirit geographical indications.