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Trans-Tasman wine tax stoush
14 May 2004
The New Zealand Trade Minister, Jim Sutton, claims that Australian winemakers are being subsidised at the expense of their NZ counterparts. Mr Sutton said it appears that Australia is in breach of the Closer Economic Relations trade deal as well as World Trade Organisation rules.
The NZ claims follows this week's Australian Budget, in which winegrowers were offered a rebate to offset the wine equalisation tax. But importers won't be able to access the rebate, giving Australian producers a major price advantage. NZ Winegrowers estimates the rebate represents a $255,000 handout to every Australian wine producer and makes Australian wine 25 per cent cheaper than a similar NZ wine.
Mr Sutton said the rebate upsets the level playing field for NZ and Australian companies under CER.
Tradingroom.com.au, 13/5/04.
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