Tariffs on NZ wine will be lifted under EU trade deal
12 July 2022
Wine exporters will benefit from a new free trade deal between New Zealand and the European Union (EU), New Zealand Winegrowers has said.
The EU is a significant export market for New Zealand wine, with over 20 million litres of wine exported, valued at over $150 million, over the past 12 months.
Under the terms of the agreement, tariffs on New Zealand wine will be lifted as soon as it takes effect. The New Zealand government has estimated this will save New Zealand wine exporters approximately $5.5 million annually. The removal of technical barriers to trade will also reduce other direct and indirect costs of producing and exporting wine to the EU.
The parties have also agreed to protect each other’s geographical indications (GIs). New Zealand’s GIs for wine (such as Marlborough, Central Otago and Hawke’s Bay) will be protected in the EU for the first time.
Some historic wine names such as port and sherry will be phased out in New Zealand over time, as they have been in many other countries that have entered into free trade agreements with the EU.
“Our understanding is that the agreement is positive for winegrowers exporting to the EU. It will help remove technical barriers to trade and reduce burdens from certification and labelling requirements in a dedicated Wine Annex. It will also support future growth in the market, and encourage exporters to focus on the EU,” said Philip Gregan, CEO of New Zealand Winegrowers.
“The EU’s complex rules can make market access difficult for winegrowers, so it is encouraging to see some easing of restrictions in this area. We look forward to publication of the full text of the agreement, so that we can examine the agreement in more detail.”