CONTENTS
- Main wine exporting countries
- What is the influence of tariffs on the wine industry?
- How much has wine gone up? Trends in the rising trade
- Position of Mexican wines in world trade
There is a gratifying guarantee in the consumption of wine. For hundreds of years this beverage has accompanied people in a meaningful way; high-class events or casual gatherings usually count on the presence of a wine, generally a red wine. red winewhich happens to be the most sought after in the world.
The consumption of this beverage is not something that has been anchored in the past. In the last twenty years, no less, the international trade and consumption of wine and wine products has increased considerably.
This was revealed by the first edition of the World Wine and Vine Trade Forum, held in Dijon, France on October 3, 2023. There is a market eager to carry out a wine tastingThere is a market eager to taste wine, demanding to taste and consume this beverage, so it is quite important to address this popularity.
That is why, in order to measure the cultural impact that wine has on society, on this occasion we will talk to you about world wine consumption and trade, as well as the position of Mexican wines in this panorama.
Main wine exporting countries
When we look at the wine trade , we see that the market has become broader (mainly due to the diversification of consumer tastes). Thus, countries whose economies are traditionally associated with the wine world, such as France, Italy and Spain, continue to maintain their dominance in wine exports.
However, new world producers, such as Australia, Chile and the United States, are taking an important place in the market. It is even possible to find in these international markets, more and more, the presence of Mexican wines. Mexican winesThe wines, which according to the properties of the region are capable of offering an infinite catalog of notes for the senses, unlike other countries.
This increase in Mexican wine consumption is reflected in the latest statistics provided by the OIV (International Organisation of Vine and Wine), which ranks Mexico 23rd among wine importing countries.
What is the influence of tariffs on the wine industry?
Among the guidelines that govern fluctuations in international trade are tariffs, a type of tax applied to each import and export product .
However, for the international wine trade , tariffs are not a major burden compared to the influence of non-tariff measures, i.e. country-specific regulations that determine factors such as health and safety considerations, including alcohol consumption warnings.
Statistics of applied tariffs on wine
The MFN (Most Favored Nation) tariff applied to wine is one of the highest in the tariff schedules of World Trade Organization (WTO) members. Much of this has to do with the fact that it is an alcoholic product.
In 2020, the average applied tariff for MFN was 58%, showing a slight decrease in 2022, at 48%. However, when considering imports, the average tariff for non-WTO countries measured by trade stood, in that same 2022, at 8.8%.
This figure indicates that most of the wine is imported by non-WTO countries because they have lower tariffs, which greatly influences the pace of trade in this product.
Impact of non-tariff measures on the wine trade
There are other trade measures, in addition to tariffs, that affect trade in wine. These are covered by the Agreement on the Application of Sanitary and Phytosanitary Measures (SPS) or the Agreement on Technical Barriers to Trade.
It is thanks to such agreements that a government can adopt measures to protect the health and safety of its inhabitants -remember that we are talking about trade in alcoholic beverages-; this is how the labeling or certification of these products is regulated.
Other examples of these measures include inspection protocols, wine sampling and testing methods, geographical designations or the use of traditional terms.
All these measures must be notified to the WTO, in order to communicate the implications they will have on exporters, and to know every detail about the product to be traded at an international level.
How much has wine gone up? Trends in the rising trade
International trade in wine products has tripled in the last two decades, according to the WTO. WTO. Translated into monetary figures, there has been a significant increase: from 17.7 billion dollars in 2000, it will increase to more than 50 billion dollars in 2021 and 2022.
Of these products, wine accounted for the largest share, with 76% in 2022 -the remaining 24% consisted of fresh and dried grapes, as well as grape juice. Thus, in the last twenty years, international trade has become a crucial aspect for the wine industry.
The share of imported wine in global consumption grew from 25% in 2000 to 45% in 2022. This shows that wine consumption has shifted to international markets, with diverse consumers anchored in different parts of the world.
Regarding imports, countries such as Germany, the United Kingdom and the United States stand out. It should be clarified that, at the time -from 2005 and until 2017- China had a rise with the international wine trade, but in recent years its imports have been reduced by more than half.
Position of Mexican wines in world trade
Mexico ranks 33rd in the world in wine production, and has sought to maintain its commercialization not only within the domestic market, but also outside Mexican territory. To this end, quality programs have been planned, such as the geographic certification of wines, which have a positive effect on export values.
Another strategy to promote the presence of Mexican wines on the international scene is the promotion of a collective brand "Vino Mexicano" by the Mexican Wine Council , as part of an initiative to guarantee quality and provide certainty to consumers in other markets.
We have seen that the consumption of Mexican red wines is on the rise, however, this does not mean that it is still free of obstacles; one of them are the taxes that for some bottles can be around 46.5% additional.
According to the ICEX export and investment agency, by 2022 only 30% of domestic production would cover domestic demand, the rest being supplied by foreign wines.
In spite of this, everything indicates that in the face of this panorama, more and more producers have taken on the task of generating solutions that benefit everyone and allow a space for high quality wines such as Mexican wines . If you liked this article, we invite you to visit our blog, where you will find more information about wines and the wine world.
