Close Menu

New Zealand Winegrowers hail free trade deal with the EU

New Zealand Winegrowers has hailed a new trade deal with the European Union that will remove barriers for its wine producers and exporters. 

Early morning in a beautiful hillside vineyard in the Marlborough wine growing region of the south island of New Zealand. More New Zealand:-

Speaking following the signing of the new deal, Philip Gregan, CEO of New Zealand Winegrowers, said the agreement was positive news for winegrowers exporting to the EU and would support future growth in the market, as well as encouraging exporters to focus on the EU market. 

“It will help remove technical barriers to trade, and reduce burdens from certification and labelling requirements in a dedicated Wine Annex,” he said. 

New Zealand currently exports more than 20 million litres of wine to the European trade bloc, worth around $150 million in the last 12 months.

Currently there are tariffs on NZ wine entering the EU, and Gregan noted that its complex rules could make market access difficult for winegrowers from New Zealand.

“It is encouraging to see some easing of restrictions in this area,” he said, adding that  he looked forward to seeing the fine detail of the agreement with the text is published in full.

The agreement will see tariffs on wine from New Zealand lifted as soon as the agreement takes effect, saving on average around  $5.5million annually, the New Zealand government calculated. The removal of technical barriers to trade will also reduce other direct and indirect costs of producing and exporting wine to the EU, it noted. 

In addition to removing tariffs, both sides have agreed to protect each other’s geographical indications (GIs), which includes wine from Marlborough, Central Otago and Hawke’s Bay, while historic wine names used in New Zealand such as ‘port’ and ‘sherry’ will be phased out in New Zealand over time. 

Gregan thanked the Ministers and officials engaged in the deal, noting that they had “at times [the negotiations] have been challenging.”

The EU deal follows a free trade agreement signed by the UK post-Brexit, New Zealand’s second largest export market in March, which started to wind down the 10-12p per bottle tariffs on still wines imported from New  Zealand into the UK.

The UK is New Zealand’s second largest export market for wine, with exports valued at over $400 million over the past 12 months.


It looks like you're in Asia, would you like to be redirected to the Drinks Business Asia edition?

Yes, take me to the Asia edition No