24 Nov Indian Tariffs Cause Trade Challenges For Australian Wine
Wine has become a key issue in ongoing trade negotiations between Australia and India as the two nations work to conclude the second phase of the trade pact by the end of the year.
Under the interim pact, tariffs on Australian wine priced above AU$5 (HK$25.21) per 750ml bottle were cut to 100% from 150%, with the provision for a reduction to 50% over 10 years. For bottles above AU$15, tariffs dropped to 75%, with a target of 25% in a decade.
However, Australian officials want deeper and faster tariff reductions, as well as a lower price point at which the tariff cuts can apply, moves which would provide better access to the Indian market.
However, Indian officials and industry groups such as farmers and the alcohol beverages industry are concerned that an influx of Australian wine would damage the country’s nascent domestic industry.
With wine constituting less than 2% of all alcohol consumed in India, Australian industry groups are proposing that the nations work together to grow the overall category which will benefit both Indian and Australian wine producers.
We will keep you updated of further developments as they become available in upcoming editions of our newsletter.
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