Yealands Wine Group CEO Tiffani Graydon celebrates the UK Free Trade Agreement which removes tariffs on New Zealand exports.
A Marlborough wine company is in line for a boost of $ 12 million when the UK free trade agreement goes into effect.
The deal, announced Thursday, will remove tariffs on 97% of goods once the final deal is done, including wine. All tariffs on New Zealand exports will be removed within 15 years.
Yealands Wine Group CEO Tiffani Graydon said any kind of tariff elimination or reduction is welcome “so that’s fantastic news”.
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“New Zealand Sauvignon Blanc is very popular in the UK and it is one of the first markets to embrace a passion and love for New Zealand wines.”
Graydon said the UK accounts for around a quarter of Yealand’s total business, with 2.5 million liters of wine sent to the UK market each year.
New Zealand wine exporters currently face tariffs of $ 50 per 100 liters of wine.
Removing tariffs will save Yealands over $ 12 million per year.
While it would take up to five years for dairy and 15 years for sheep and beef tariffs to be completely removed, the wine industry is among the immediate winners of the trade deal, with tariffs being removed. from the date of payment.
“It remains to be seen how far this goes through the consumer,” Graydon said.
âI’m sure part of it will, whether we reinvest that in brand marketing or in our distribution channels.
âBecause we don’t sell direct to consumers in the UK, we go through our distributor and then we have to have conversations about it.
âWe’ll wait and see what the details are before making any decisions.
“But the goal is still to get our quality wine into the hands of as many UK consumers as possible, so if we can reinvest in that that would be the goal.”
New Zealand Winegrowers chief executive Philip Gregan said the deal would bring significant progress, including a specific annex for wine.
âThis will help remove technical barriers to trade and minimize burdens associated with certification and labeling requirements.
âThe UK is New Zealand’s second largest wine export market, with exports valued at over $ 400 million in the past 12 months,â said Gregan.
Under the free trade agreement, there will also be relaxation of visa requirements between New Zealand and the UK for entrepreneurs, professionals and visitors.
The UK is currently New Zealand’s seventh largest trading partner, with bilateral trade worth $ 6 billion by March 2020.
Details of the new agreement are being finalized.
Once the deal is signed, it is expected to increase exports by 40% and New Zealand’s gross domestic product by $ 970 million.