Canada Reaches Partial Agreement with Australia on Wine

Canada and Australia have reached a partial agreement on wine after several years of negotiations. The agreement, which was signed on August 13, 2020, is expected to increase trade between the two countries and provide greater market access for Canadian wine exporters in Australia and vice versa.

For many years, Canadian wine producers have encountered difficulties in gaining market access in Australia due to strict regulations and barriers to entry. This has resulted in limited export opportunities for Canadian wine, despite the quality of the product.

Under the new agreement, Canadian wine producers will now be able to export up to 670,000 liters of wine to Australia annually, with zero tariffs. In addition, Australian wine exporters will have access to Canada`s market without incurring a tariff rate of 5.6%.

This is a significant achievement for both Canada and Australia, as wine is a major export commodity for both countries. The Canadian wine industry contributes approximately $9 billion to the country`s economy, while Australia`s wine exports contribute over $2 billion to its economy.

The agreement is also expected to create new jobs in both countries, as wine producers will be able to increase their production to meet the demand from the respective markets. This will not only benefit the wine industry but also the wider economy.

The agreement is part of a broader effort by Canada and Australia to strengthen their economic ties and increase trade between the two countries. Since the Canada-Australia Joint Committee on Trade was established in 2017, the two countries have been working together to reduce trade barriers and increase market access.

In conclusion, the partial agreement between Canada and Australia on wine is a positive development for both countries. It is a testament to their commitment to promoting free and fair trade and strengthening their economic ties. With the expected increase in trade between the two countries, the wine industry is likely to benefit significantly, creating employment opportunities and boosting economic growth.