Australia has now ratified the Trans-Pacific Partnership (TPP-11) trade agreement, giving wine exporters access to more markets and greater opportunities for our businesses and increased investment. The TPP-11 is one of the most comprehensive and ambitious trade agreements in Australia’s recent history.
We join Canada, Japan, Mexico, New Zealand and Singapore as part of the first group to ratify, meaning TPP-11 will enter into force on 30 December 2018 in the first six markets. The Agreement is still undergoing internal ratification in Brunei, Chile, Malaysia, Peru and Vietnam.
Australia’s ratification means that there will be the bonus of two tariff reductions within three days – one on 30 December and another on 1 January 2019.
Tariffs will be eliminated immediately in Canada.
In Mexico, tariffs of 20 per cent on sparkling wine will be eliminated immediately while tariffs for other wines (with a value above US$5 per litre) will decrease to 13.3 per cent on 30 December and to 6.6 per cent on 1 January 2019. The reduction is slower for wines with a value of US$5 or less per litre.
The TPP-11 Agreement includes a Wine and Spirits Annex. The key points include:
- incorporation of the World Wine Trade Group Labelling Agreement on the placement of the four common mandatory items on wine labels
- provisions to allow for additional mandatory label information to be applied prior to customs release and no need for a ‘use-by’ date
- certainty for the continued use of certain terms including chateau, classic, clos, cream, crusted, fine, late-bottled vintage, noble, reserve, ruby, solera, superior, sur lie, tawny, vintage or vintage character (unless already protected in the particular market prior to February 2003)
- no requirements to disclose a winemaking technique unless justified on health and safety grounds
- use of Codex generic certificate if necessary to certify wine on health and safety grounds, and
- a stated aim towards mutual acceptance of winemaking practices.
Export Market Guides for Mexico, Canada and Japan have been updated to incorporate the changes. Further details can be found here on the Department of Foreign Affairs and Trade website.