Political factors that influence Viticulture PDF

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Political factors that influence Viticulture These can be divided into national and international bodies that impact on the industry. National: Governments are responsible for managing national economies. They can influence the level of activity in the industry through different methods. These include taxation incentives or government grants (think about T/L). To increase exports in the wine industry in the 1990s the govt engineered a massive increase in the land available for growing vines. Governments also put in place the regulatory framework in which the industry operates. Complete the table. Organisation Wine Australia (p386) Austrade (look at about

Role Austrade contributes to Australia's economic prosperity by

on their website)

helping Australian businesses, education institutions, tourism operators, governments and citizens when they develop international markets and promote international education

Food Standards Australia New Zealand

Taxation is another area affected by the government. Australians pay 49% in tax including GST on domestic wine- higher than any other wine producing country. There is also state licensing laws to consider, restrictions on vineyard water usage, and disposal of residues. International: National governments work with international organisations to ensure that the international wine industry is competitive. The Australian government work with the WORLD TRADE ORGANISATION (WTO) to secure better access to overseas markets. The WTO puts together trade agreements between nations and govts. They aim to reduce barriers to trade and finance. The WTO is an affiliate (part of) the United Nations. It also aims to establish a fairer, more transparent rule based trading environment. The govt in Australian also works with the Office of Vine and Wine (OIV) to improve access for Australian wine to international markets.

The government must ensure that wine exported meets the expectations/laws of the overseas country it is going to. Some countries have different regulations about pesticides used in grape growing. The govt has tried to increase free trade agreements between us and other nations. These are BILATERAL (two parties) arrangements. We did this with the USA an opened ourselves to a market of nearly 300 million people. The European Union (EU) has the most protected and subsidised industry in the world. It is the strongest trade bloc. They make it more difficult than other regions to export tobecause their regulations are so stringent and restrictive. They have very tight APPELLATION CONTROL- to ensure that their consumers know what they are purchasing (eg region, type of grape, way grapes are picked, way vines are planted, alcoholic content etc. This has been a saviour and a curse for the EU. It has been a saviour as it makes it hard to penetrate the industry- but also makes their wine easy to copy (and the New World can do it cheaper). P382 1. What is a bilateral trade agreement? – A bilateral trade agreement confers favoured trading status between two nations. By giving them access to each other's markets, it increases trade and economic growth. The terms of the agreement standardize business operations and level the playing field. 2. Who does Australia have bilateral trade agreements with? – Australia has bilateral trade agreements with the USA and China due to their significant population base.

Countries that Australia has a free trade agreement with China

Amount exported -

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In 2008= 427 Australian wine exporters shipped 15 million litres of wine valued at $73 million to mainland China In 2018, 2003 Australian wine exporters shipped 163 million litres of wine valued at $1.03 billion to mainland China

European Union (EU)

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In 2018, Australia exported 350 million litres of wine valued at $596 million to EU member markets.

USA

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In 2018, Australia exported 161 million litres of wine valued at $424 million.

Canada

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In 2018, Australian wine exporters shipped 74 million litres of wine

valued at $209 million. New Zealand

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NZ account for 78% of the Australian importation

Japan

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Wine exports to Japan increased by 17% and in 2018 reached $55 million

Malaysia

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In 2018 there was $32 million of wine exported

Thailand

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Second largest exporter to the country is Australia Wine tariff was eliminated in 2015

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