Fleur Lanphier, Natalie Stoeckl
Using data from the Australian Wine and Brandy Corporation, this paper explores the potential effect of the Australia–United States Free Trade Agreement (AUSFTA) on Australian wine exports to the United States. Specifically, it examines the relationship between the Australian–US real exchange rate, and wine sales of nine different categories of Australian wine exports between 1990 and 2004. The analysis indicates that sales of mid-valued red wine, white wine and sparkling wines are more sensitive to changes in price than other types of wine. This suggests that AUSFTA is likely to generate a larger proportional impact on sales of these wines than other varieties.
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