WORLD
SPIRITS ALLIANCE MEETS
I
have recently returned from Geneva, where I attended the second meeting
of the World Spirits Alliance (WSA). The WSA is the representative body
of the international spirits industry. Its membership consists of national
associations representing the industry in Australia, Canada, the Caribbean,
Europe, Japan, Mexico, New Zealand, South Africa and the United States.
Background
The forum was the second such meeting (the last being in 1999 in Miami).
The WSA’s focus is on looking at global initiatives that can assist
the market access of spirits in various world markets. Specifically,
the discussions centred on what barriers (tariffs, customs processes,
documentation, certification, labelling, advertising bans, state monopolies,
etc) exist to the exporting of spirits to various countries.
A New Trade Round
With this focus on international trade issues that impact upon the distilled
spirits industry, the WSA is working with other industries in pushing
for a new World Trade Organisation (WTO) ‘trade round’.
A new trade round would provide an excellent opportunity
for the International Distilled Spirits Industry to secure enhanced
access to export markets around the globe, clarification of protection
of geographical indications and trademarks associated with its products,
and the elimination of procedural and regulatory obstacles to the movement
of distilled spirits in international trade.
Key Objectives
In order to ensure that a new trade round provides the maximum possible
benefits for the spirits industry, the WSA has identified its most important
objectives for the negotiations. It has resisted the temptation of presenting
a comprehensive ‘wish list’ of objectives of varying degrees
of importance, lest it distracts from securing the objectives of greatest
benefit to the industry.
WSA’s overall priorities for a new WTO trade round
are to secure:
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significant tariff reductions and,
where possible, elimination of tariffs; |
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liberalisation of non-tariff trade
barriers; |
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liberalisation of restrictions
on services, including distribution and advertising; |
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enhanced measures to facilitate
trade in distilled spirits; and |
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clarification of protection of
geographical indications and trademarks. |
Local Relevance
While much of the WSA forum’s agenda was focused on opening up
international markets for spirit exporters – particularly developing
countries that tend to have the most restrictive trade barriers –
the issues are still of direct relevance to the Australian industry.
Most notably, Australia still imposes a 5% ‘protective’
tariff on imported spirits. With a very few notable exceptions, there
is no domestic spirits industry which Australia needs to protect. Consequently,
there is no defensible policy rationale for continuing to retain this
existing 5% tariff. Its retention simply results in Australian consumers
paying higher prices for spirits than they otherwise should, and delivering
an additional $10 million into government coffers each year. DSICA has
repeatedly called on the Federal Government to abolish this tariff immediately.
Second, Aussie ‘icons’ such as Bundaberg Rum
have created export markets, and any easing of restrictions or lowering
of barriers to international markets will be of benefit to local industry
and the sales of locally produced spirits overseas.
Third, the parent companies of most of DSICA’s members
export to many parts of the world, and similarly the further opening
of international markets is of direct benefit to them, with potential
flow-on benefits for their global operations.
The Way Forward
At the forum, various experts from the World Trade Organisation secretariat
talked about the international processes needed to launch a new trade
round – the last being Uruguay in 1995 – and what the international
spirits industry could do to aid the processes. In a nutshell, it is
up to each country’s trade association, such as DSICA, to impress
upon their governments the need for trade reforms. There is little resistance
from developed countries – the challenge will be to ensure the
developing countries are on board, as just one country’s objection
could scuttle the whole process.
A new round of WTO trade negotiations
offers an excellent opportunity for the International Distilled Spirits
Industry to create new opportunities to expand its exports of distilled
spirits to world markets, accompanied by additional jobs and investment.
DSICA, with the WSA, will continue to push for open markets around the
world to the benefit of spirit consumers, producers and exporters.
This article was first published in National Liquor
News,
August 2001
