California Wine Industry Seeks Better Access to India and Vietnam
California Congressman James Gallagher has urged the Trump administration to pursue better wine market access in India and Vietnam as the state’s growers face weak domestic demand and reduced opportunities in Canada. He also called for reviews of US labeling and duty drawback rules that growers say favor imported wine and ingredients.
California looks to Asian markets
California wine producers are seeking expanded access to India and Vietnam as declining domestic demand, trade barriers in Canada and competition from imported products weigh on the state’s grape growers. Congressman James Gallagher has asked the Trump administration to make the two Asian markets a priority in trade negotiations while reviewing US regulations that he argues disadvantage domestic production.
In a letter to US Trade Representative Jamieson Greer released on October 8, Gallagher said tariff barriers continued to restrict California wine sales in India and Vietnam. He described both countries as promising destinations for the industry and urged the administration to pursue improved access as the 2026 harvest approached its end, according to India News.
The request comes while Washington and New Delhi are negotiating measures to expand bilateral trade and reduce barriers. Gallagher also called for efforts to restore access in Canada, where he said opportunities for American wine had been severely reduced. The combination of weaker domestic consumption and restricted foreign markets has increased pressure on growers to find alternative outlets for California grapes and finished wine.
Labeling rules come under scrutiny
Gallagher’s intervention extends beyond tariffs. He asked federal officials to review Alcohol and Tobacco Tax and Trade Bureau rules governing wines labeled “United States” or “American.” Under the existing standard, those wines must contain at least 75% US-grown agricultural products and must be fully finished in the United States.
The remaining 25% may consist of foreign-grown products without disclosure of their origin on the label. Gallagher said growers believe this provision weakens demand for California grapes, depresses prices and prevents consumers from readily distinguishing wine made entirely from American agricultural ingredients.
The dispute highlights how labeling requirements can influence sourcing decisions within the US wine industry. The ability to blend foreign ingredients into products carrying a national designation may give wineries more flexibility over input costs, but California growers contend that it also allows imported material to compete under more favorable conditions than grapes grown domestically.
Natalie Collins, president of the California Association of Winegrape Growers, supported Gallagher’s request. She said growers were facing an “incredibly difficult market” and argued that federal policy should not make it harder for American-grown grapes to compete.
Duty drawback provisions face review request
The letter also questioned federal duty drawback arrangements. In certain circumstances, excise taxes paid on imported wine can be refunded when substitute wine is subsequently exported. Gallagher argued that this mechanism could make imported bulk wine more attractive to US businesses than domestically produced wine or California-grown grapes.
He asked the Office of the US Trade Representative to support a review by US Customs and Border Protection. Gallagher also sought examination of bulk products imported from Canada that do not meet the US definition of wine but receive customs and tax treatment associated with wine.
Any federal response could affect sourcing economics for wineries, demand for California grapes and the competitiveness of imported bulk products. At the same time, progress in India and Vietnam would depend on negotiations over tariffs and other market-access conditions. Gallagher’s requests therefore combine two objectives: reducing what growers view as disadvantages within the domestic regulatory system and creating additional export channels for California wine.
For producers and traders, the immediate issues to monitor are whether US officials place wine access on the negotiating agenda with India and Vietnam, whether access to Canada improves, and whether regulators undertake the requested reviews of origin labeling, duty drawbacks and Canadian bulk products. India News did not report any commitment from the administration to adopt the proposals.
