Tuesday, 21 August 2012 14:31

Ready, Set... Trade

Written by 

With New Zealand Wine exports now valued at just under $1.2 billion and representing around 75% of industry sales, international trade is now the life blood of our wine industry.

There are many factors driving intentional success. Wine quality and brand recognition/strength come to mind quickly. 

One of less obvious determinants though is the market access conditions which govern the entry of our wines into global markets and how these compare with the access conditions for other countries.   In a comparative sense, if we gain competitive advantage in those market access conditions,  New Zealand wine will have an advantage in the market place. Fail to secure competitive access and New Zealand wineries will find their ability to compete successfully is severely curtailed. 

New Zealand Winegrowers recognizes the opportunities and threats that arise in terms of access to existing and potential markets. As a result we devote considerable time, effort and intellectual horsepower to securing positive and practical outcomes for New Zealand producers.  

 In that context we work very closely with various government agencies, notably Ministry of Foreign Affairs and Trade, Ministry of Primary Industry, New Zealand Customs Service, Ministry of Economic Development and others. At various times we also work very closely with sister organisations in other wine producing countries. Our goals in all our market access initiatives are; in the first instance, to protect the access that New Zealand wine producers already have in markets, and second to support growth in markets by securing improved access.

A brief review of NZ Winegrowers activities and trade matters at close of 2011/12 shows it was a very busy year with involvement in matters such as:

The EU rules on allergen labelling and the EU Organic Wine Standard.

China customs procedures

The US TTB Notice 122 on vintage date requirements.

The Russia/Kazakhstan/Belarus Free Trade Agreement and the technical regulations “On the Safety of Wine”.

The Brazil safe guard investigation.

The EU’s application to register “Zeeland” as a Dutch GI for wine in Australia.

Attendance at the APEC Wine Regulators Forum in San Francisco and at various World Wine Trade Group, OIV and FIVS meetings.

The next 12 months will be no less busy. NZW will continue to seek a positive outcome for wine within the framework of the ongoing Trans Pacific Partnership (TPP) negotiations which have now been widened to include Canada, which alone is a market worth  $70 million of New Zealand wine exports each year. TPP is very important to the future of New Zealand wine as over 60% of wine exports by value go to TPP negotiating countries.

From a trade perspective highlights of the next year will include two important meetings to be held in Auckland in November.

The first meeting is of the APEC Wine Regulators Forum which is a follow up to a meeting held in September 2011.   NZW is working closely with the government on the Forum and has secured funding from both APEC and the government to assist with its organisation. The Forum will bring wine regulators from all the key Asia Pacific economies to New Zealand.  It is our opportunity to influence how these economies are regulating the access into and sale of wine in their markets.   Key themes at the meeting are managing wine as a low risk product and certification procedures.

The second meeting in Auckland will be of the World Wine Trade Group which New Zealand joined as a foundation member in 1998.   The focus of the Auckland meeting will be the completion of Phase Two of the WWTG Labelling Agreement which will provide for improved requirements around multi varietal and multi regional labelling.  If all goes according to plan this Agreement will improve access to WWTG markets such as Canada and the United States.

If there are any questions about New Zealand Winegrowers involvement in international trade issues please contact John Barker, General Manager Advocacy and Trade. ν

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