Trade Minister Mark Vaile has welcomed the signing of a new agreement to facilitate the wine trade between Australia, Canada, New Zealand, Chile and the United States.

The five countries have signed the Mutual Acceptance Agreement on Oenological Practices (wine-making) at a meeting of the New World Wine Producers' Group in Toronto. 

Mr Vaile said the agreement simplified and clarified the regulations applying to trade in wine between member countries.

"The new agreement ensures that wines produced and approved for consumption in Australia will also be acceptable to our trading partners, as long as legitimate health and safety considerations are met," said Mr Vaile.

"It also means that Australian wine exports  to key markets such as the United States and New Zealand can continue to grow without impediment from unnecessary red tape. 

"The wine industry is one of Australia's outstanding export successes, combining our agricultural, winemaking and marketing expertise.  Exports for 2000-01 were up 24% to $1.75 billion, and we dominate major markets like the UK."

Mr Vaile said the agreement rewarded innovation and technical excellence in wine making because enabled wine-making innovations pioneered by Australia and other "New World" countries to be more readily adopted.

"The agreement contrasts markedly with the European Union method of individually examining and approving each and every wine-making practice involved, even if there are no health and safety implications," said Mr Vaile.

Negotiations for an agreement to simplify labelling requirements between the five member countries of the New World Wine Producers' Group were also launched at the Toronto meeting.  Mr Vaile said a labelling agreement had been identified by the Australian wine industry as the next key trade facilitation initiative.