European Wine Exports: The Key Role of Trade Policy

Wine exports from the European Union have gained shares in both traditional markets (US, Canada, Switzerland and Japan) and in new markets (China, Hong Kong and Russia). In coming years, major growth in consumption and imports is expected in these new markets and in others, like Singapore, South Korea, India, Brazil, Mexico, South Africa and Angola. Most of the above new markets, however, are still heavily protected by high tariff and non-tariff barriers, the most intrusive being wine labelling regulations, oenological practices, maximum residue limits of agrichemicals, certification and testing procedures. Since the stalling of the Doha multilateral negotiations exporting countries have been negotiating Free Trade Agreements to gain preferential access to fast growing markets. The EU has signed several agreements relevant to the wine trade (e.g. with South Korea, Singapore and Canada) and a number of negotiations are currently in progress. However, some of the EU's main competitors, in particular Chile, Australia and New Zealand, are very active as well. EU wine exporters would therefore be aided by an effective trade policy strategy, otherwise they risk losing ground to their competitors. The timely conclusion of the agreements currently under negotiation (as with India) and a prompt start to negotiations with China would therefore be disirable.