Australia has recently signed pacts with China and Hong Kong, clearing the way for its wine industry to increase penetration in these growing markets.
The growing wine export from Australia to China and Hong Kong will get a new direction with the signing of two new agreements that will increase cooperation and promote the trade, as reported by China Wines Information Website.
According to Tony Burke, the Federal Minister for Agriculture, the Memorandum of Understanding (MoU) will reduce the complications for the producers to export wine to China. China is the leading market in Asia for the Australian wine, with exports in the year to March 2009 standing at over $81 Million. In the same period, export of wine to Hong Kong was recorded over 5.6 Million Litres at a value of $40.7 Million. Moreover, Hong Kong is emerging as a “wine hub” in Asia. In the year to March 2009, wine exports from Australia to Hong Kong surged by over 21%.
The setting up of a single point-of-contact will make it easier to address the issues relating to labeling and certification. The latest agreements will also boost up the status of the Australian wine in Hong Kong.
Moreover, this agreement is especially crucial from Australia’s point of view as the consumption of wine is increasing in Asia, and this will enable Australia to grab an increased share in that growth. The Australian wine exports to Hong Kong and China will be bolstered by two new agreements intended to promote the trade and cooperation among the countries.
The agreement with China will help the Australian Wine and Brandy Corporation to assist its exporters in shipping wine to this crucial market. Besides, Australia is expected to obtain undertakings from the Chinese government to cooperate in supporting food supplies across the world and to quicken the efforts to establish a Free Trade Agreement, which will benefit the farming, forestry and fishing sectors of Australia.
According to a Research Analyst at RNCOS, “Australia is a leading food exporter in the world. Thus, any international effort to address the global food security concerns largely depends on Australia’s ability to supply the food freely. Moreover, the Australian deal with Hong Kong and China will strengthen the position of Australian wine market in the region.”
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