Fiscal fermentation: Financial Secretary John Tsang witnesses the signing of the memorandum of understanding on wine by French Minister for Agriculture & Fisheries Michel Barnier and Secretary for Commerce & Economic Development Rita Lau.

Hong Kong has signed a deal with one of the world's premier wine producers France to boost co-operation in the trade.

Financial Secretary John Tsang hailed today's signing of the first memorandum of understanding on co-operation in wine-related business with France saying it shows the two sides' commitment to promoting the trade.

Business boost

At the signing ceremony today Mr Tsang said the two sides will enhance co-operation, exchange and experience sharing in stimulating wine-related trading and investment, education and manpower training, tourism and culture, and co-operation against counterfeit wine.

"I am confident this will generate economic benefits for both places, including the creation of jobs in Hong Kong, which has been the objective underlying the decision to remove duty on wine," Mr Tsang said, adding more jobs will be created in the trading, retail, logistics and storage sectors, as wine-related companies expand their local operations.

French Minister for Agriculture & Fisheries Michel Barnier said the memorandum is a win-win solution for Hong Kong and France.

"With its logistical and financial expertise, its unique knowledge of the Mainland market as well as the strength of its hospitality and retail sectors, Hong Kong is the natural wine hub for Asia and is well positioned to catch the emerging business opportunities of the fastest growing international wine market," Mr Barnier said.

Record sales

Hong Kong is the first free wine port among major economies after scrapping wine duty earlier this year. The solid growth in wine imports has seen wine auctions with record-breaking sales and announcements by renowned companies to expand their wine trading, distribution and storage businesses in Hong Kong.

France is Hong Kong's largest supplier of wine imports, occupying 30% last year. In terms of value, French wine represented 57% of Hong Kong's wine imports last year, with an impressive 108% growth rate on 2006.