South Africa’s duty-free
quota of wine exports to the
European Union is set to
more than double, thanks to
the signing of the Economic
Partnership Agreement (EPA)
between the EU and the
Southern African Customs
Union last month.
In terms of the deal, the
present annual duty-free quota
of 48 million litres of wine that
can be exported to the EU will
increase to 110 million litres.
It’s a much-needed boost for
the industry, which has been
besieged by drought and fires,
not to mention a tough global
economic climate.
According to Michael
Mokhoro, the stakeholder
relationship manager for
the South African wine
and brandy industries, the
agreement levels the playing
field for South African wine
producers, who are competing
against the likes of Australia
and Chile.
“The EU is by far the wine
industry’s biggest export
destination, accounting for
74.8% of annual offshore sales
volumes, worth R5.01 billion,”
he said. “Tariff relief is always
welcome. We need more
preferential trade agreements
if we want to boost exports
and be globally competitive.
We cannot compete globally if
we do not have these types of
beneficiations.”
Set for finalisation this
month for implementation in
October, the duty-free quota
for the remainder of this year
will be allocated on a pro rata
basis, with the full 110 million
litres coming into effect next
year.
Sparkling wine does not
form part of the duty-free
quota under the EPA, as it
already qualifies as duty free
under the Trade, Development
and Cooperation Agreement
treaty previously concluded
between South Africa and the
EU.
Initially, it is expected that
70% of the 110-million-litre
quota would be directed to
packaged wines, which were
those in bottles or other
containers of 2 litres or less.
CAPTION
SA’s current annual duty-free quota of 48 million litres of
wine to the EU is set to more than double.
Major boost for wine exports to EU
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