Australia takes wine dispute with Canada to the next level

The Federal government has escalated its trade dispute with Canada over discriminatory treatment of Australian wine exports.

It's been alleged that Canada's national and several provincial governments have imposed extra taxes and mark-ups on imported wine or restricted access to Australian wine. British Columbia has gone as far as banning imported wine being sold at grocery stores.

The Australian government had asked the World Trade Organisation to set up a panel to resolve the dispute.

"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," Trade Minister Steven Ciobo said.

"Wine is an important export for Australia and helps create and support Australian jobs. The Turnbull government will stand up for our producers and not allow other countries to discriminate against us, costing us exports and potentially jobs.

"Consistent with our strong bilateral relationship, Australia remains open to discussing resolution of our concerns with Canada. Australia strongly supports the multilateral trading system, with the WTO at its heart. One of the key strengths of the WTO is its disputes system, which ensures WTO members comply fully with their commitments."

WFA welcomes announcement

The Winemakers’ Federation of Australia (WFA) supports the government taking future action over Canada’s discriminatory measures.

Tony Battaglene, WFA Chief Executive, explained: "The Australian Government and Minister Ciobo have continued their strong leadership and investment in industry priorities. The request to establish a panel is a vital step to ensuring meaningful outcomes are achieved and highlights this and the value of the WTO system in resolving trade disputes.

"Canada is an extremely important market for Australian wine, our fourth largest by volume and value ($187 million). We need to ensure a level trading environment to allow competition for all wine producers.

"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 Canadian consumer deserves a better deal than that.”

This is the first since 2003, where Australia has initiated formal WTO action. The WFA said it will continue to work with the Australian Government to progress this action, and ensure outcomes are progressed for Australian wine business.