SA signs wine trade agreements

South Africa has signed two international agreements to facilitate the wine trade among signatory countries, the agriculture, forestry and fisheries department said on Friday.

CAPE TOWN – South Africa has signed two international agreements to facilitate the wine trade among signatory countries, the agriculture, forestry and fisheries department said on Friday.

The agreement on mutual acceptance of oenological (the study of all aspects of wine and winemaking) practices recognises the wine making practices of signatories as being in compliance with their own wine-making practices, it said in a statement.

The requirements for wine labelling agreement accepted common labelling information and minimised unnecessary labelling-related trade barriers. These would significantly improve trade flows among signatory parties, thereby reducing transaction costs.

The World Wine Trade Group (WWTG) is an informal grouping of wine producing countries. The aim of the group,  founded in 1998, is to share information, collaborate on a variety of international issues, and create an environment for the free trade in wine. Regular participating countries of the WWTG included Argentina, Australia, Canada, Chile, Georgia, New Zealand, the United States, and SA.

China had participated during the past two meetings of the group and expressed a wish to become a regular participant, the department said.

“SA’s accession to the two wine agreements will considerably lessen the administrative burden related with the trade in wine.”

This was especially the case with the lucrative US wine market where certain certification requirements would fall away, thus saving the wine industry and the relevant regulatory authority costs, the department said.