Australian wine secures fair trading terms

The Hon David Littleproud MP
Minister for Agriculture, Drought and Emergency Management
  • Australia and Canada have agreed to settle a number of Canadian measures that were the subject of a WTO dispute
  • The agreement removes discriminatory trade barriers in Canada including in the provinces of Ontario and Nova Scotia
  • Australian wine producers are toasting successful resolution of trade restrictions that have been a long-running obstacle in our wine trade with Canada, our fourth largest wine export market.

    Minister for Agriculture, Drought and Emergency Management David Littleproud welcomed the Canadian Government’s agreement to allow Australian wine to compete on a level playing field.

    “With $185 million worth of Australian wine exported to Canada in 2019, this is a welcome outcome for our producers and the economy,” Minister Littleproud said.

    “As a result of our hard work and pressure through the World Trade Organization challenge, Canada has agreed to remove over time, measures imposed by the Canadian federal government and the provinces of Ontario and Nova Scotia which saw our wine producers disadvantaged.

    “Australian wine producers will no longer bear the burden of discriminatory measures which gave Canadian wine producers exemptions from taxes or more favourable mark-ups.

    “Australian wine producers will also have more access to shelf space in Canada, including in Ontario, Canada’s most populous Province.

    “This means valuable exposure for Brand Australia and more opportunities for our farmers to lead Australia’s recovery out of Covid-19.

    “We thank the Canadian Government for its co-operation in progressing this resolution.

    “The successful negotiation of meaningful outcomes outside of the WTO dispute settlement process speaks to the strength of our Australia and Canada’s bilateral relationship.”

    “What this should show our agricultural producers is that we aren’t just going to lie down and take the imposition of unfair trade-restrictive policies from our trading partners.

    “We are committed to the WTO rules-based system and if something is unfair we’re going to take it to the WTO as the independent umpire.

    The outcome adds to the positive results of the settlement reached between the Australian and Canadian governments in April 2019 to remove unfair restrictions on Australian wine sales in the province of British Columbia.

    Fast facts:

    • As a result of this agreement Australia will not proceed with its claims concerning Canadian measures at the federal level and in the Provinces of British Colombia, Ontario and Nova Scotia in its WTO dispute.
    • Discussions are continuing on a possible settlement regarding the remaining Quebec measures.
    • Australian wine has the fifth largest share of the Canadian wine market behind wines from France, Italy, the US and wines domestically produced in Canada.

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