Win for Australian Wine Exporters to Vietnam

Vietnam has agreed to reduce tariffs on Australian wine imports in line with tariff reductions given to imports of wine and spirits from the European Union, Trade Minister Mark Vaile announced today.

“Prospects for sales of Australian wine to Vietnam will significantly improve as a result of Vietnam’s agreement to lower tariffs on Australian wine imports,” Mr Vaile said.

“At present, Australia’s share of the wine market in Vietnam is around five per cent, but sales over the last five years have shown an upward growth of more than 20 per cent. There is considerable scope for increased sales of Australian wine in Vietnam, especially as the Vietnamese economy continues to grow in size and sophistication.”

The Vietnamese Trade Ministry’s decision to lower tariffs follows sustained efforts by the Australian Government over the past year to encourage Vietnam to accord Australian wine imports the same treatment as wine imports from the EU. The decision is backdated to 1 May 2004.

“Australia will continue to press Vietnam for a level playing field for all Australian goods and services,” Mr Vaile said.

“Australia will also continue to support Vietnam’s efforts to join the World Trade Organisation (WTO). Vietnam’s WTO membership will provide the best guarantee that all her trading partners will compete on an equal basis in the marketplace.”

Vietnam agreed in 2003 to reduce tariffs on European wines and spirits in two stages: from 100 per cent to 80 per cent in January 2004, and from 80 per cent to 70 per cent in January 2005. Vietnam’s agreement with the EU also eliminated minimum import pricing and additional duties on wines and spirits originating in the EU. These benefits will now be extended to Australian wine exporters.

Contact: Matthew Doman (Ministerial) on 02 6277 7420 - Justin Lee (Departmental) on 02 6261 1555