E&OE
1 December 2008, Brussels, European Commission
Interview with AP and EFE (Spanish News Agency)
Subject: signing of the EU-Australia wine agreement
REPORTER: (inaudible).
STEPHEN SMITH: The agreement so far as Europe is concerned gives certainty to the European wine producers for the geographical indications, champagne, sherry, and the like. For Australians, it gives certainty on techniques of wine production, the recognised wine production techniques. And because Australia is a young wine industry, there are a number of techniques that we have either adopted or adapted, which have now been recognised by Europe. And this is a significant thing. So it gives our wine producers certainty. I think, if you like, in a non-technical sense, you can mount an argument that it’s a reflection that the Australian wine industry is going from producers to makers, going from a science to an art. Of course, the making of wine in Europe is appreciated as an art. So it is a reflection of our quality, that we are not just commercial producers; but the quality, the techniques have now become enhanced. So it gives our producers certainty of techniques; it gives European producers certainty of geographical indications. And in the end, what wins for the Australian wine industry is the quality of the product.
REPORTER: But Minister, is this also so that some Australian producers could not export to the European Union because of that, you know, because of the rules on…
SMITH: Well, we have had to, over the years, grapple with the geographical indication changes. What this agreement does, for example, it gives Australian producers ten years to find another label, another name to Tokay, which is one of the protected ones. So Australian wine producers will now have ten years to work out what’s the best way of marketing Australian Tokay in Europe under a different label, under a different name. So, that’s one of the bases for, if you like, improved or potential better access under the agreement. And instead of there being a bar on the export or the import of that product, there is a period of grace, a ten years period of grace to enable Australian wine producers to come to a different labelling, a different marketing arrangement. It is a quite extensive agreement and the respective wine industries can draw attention to a whole range of things which benefit both wine producers. I think what underlines it is the recognition of the quality of Australian wine, of the capacity of the Australian wine industry to work cooperatively with the European wine industry, and not have to rely upon some of the old well-established European geographical indications as a reflection of quality, but to stand in its own right and to allow the quality of Australian produce to be respected in the same right.
REPORTER: Now we have an export of over $1.4 billion to the European Union wine. How much do you think you can add to that because of the agreement that is?
SMITH: You never know. Traditionally Australia has been a minerals and petroleum resources producer. Now there are a whole range of things that we export. Our economy has become much more diverse, and wine is one of our modern great exports. So, I think, in the end, it’s quality that sustains you and the advantage of course of what the European Union brings to Australia is just the size of the market. We are a country of 20 million people. So it’s the size of the market which is attractive, but it is also the market where the moderate drinking of quality wine is deeply appreciated, that is part of the culture. If we can break into that market as a result of the quality of our produce, it is a terrific market to break into. We don’t put any limits on how far we can go because, as I said, we are a relatively young industry in historical terms and we have done very well in a short period of time, and we think we can do even better.
REPORTER: I would like to ask you, in the European market now, which are your main competitors now? Latin American producers?
SMITH: The wine competitors for Australia, if you like, in terms of the European market are the younger wine producing countries: South Africa, South America, Chile, North America, California. So our competitors are the younger wine producing countries. And just as we acknowledge great wines in Australia, so it has to be acknowledged that those countries also produce fine wines. It is a competition, and in a competition, you only survive or sustain by the quality of your produce.
REPORTER: And you think with this wine agreement, you think your access to the European market will be easier?
SMITH: We think so, we think it sets the scene for better and greater and easier access, but its access that will only sustain itself off the back of the quality of our produce.
[Ends]
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