Australia up the ante with WTO action against Canada over wine

AUSTRALIA is stepping up its World Trade Organisation action against Canada in the latest wine trade wars.

Australia says Canada’s measures on imported wine are discriminatory.

AUSTRALIA is stepping up its World Trade Organisation action against Canada in the latest wine trade wars.

Federal Trade Minister Steven Ciobo today confirmed Australia he has asked the WTO to convene a panel to resolve the dispute over Canada’s “discriminatory measures” on imported wines.

Australia has objected to the extra mark-ups and trading conditions Canada has placed on imported wine sold in grocery stores, arguing they are protectionist measures.

The Winemakers’ Federation of Australia has welcomed the proceedings — industry has a lot to lose from the strict trading conditions imposed, given Canada is Australia’s fourth-largest export market for wine, valued at almost $200 million a year.

“We need to ensure a level trading environment to allow competition for all wine producers,” WFA president Tony Battaglene said.

“The Australian wine industry does not oppose a helping hand for the Canadian wine producers — we believe they add diversity and colour to the global wine sector.

“However, such help should not discriminate against sales of imported Australian wine.”

The Government first launched WTO proceedings in January — a rarity for Australia, with the last formal action initiated in 2003 — after talks between the two countries broke down.

“We are disappointed that Canada has not taken concrete action to respond to our concerns, which unfairly restricts Australia’s wine trade, and is inconsistent with Canada’s WTO obligations,” Mr Ciobo said today.

“The Turnbull Government will stand up for our producers and not allow other countries to discriminate against us, costing us exports and potentially jobs.”

Mr Ciobo said Australia remained open to working with Canada towards a resolution.