The Government of Hong King this week announced that it would abolish duties on wine in the 2008/2009. Duties were already reduced from 80% to 40% in the 2007/2008 financial year. That, plus the introduction of the Hong Kong International Wine Expo, organised by the Hong Kong Trade Development Council (HKTDC), and opening later this year, is intended to make Hong Kong the wine gateway to Asia.

“As the world’s freest economy, Hong Kong is a global trading hub with all the services in communications, finance and transportation which support this system,” said Raymond Yip, assistant executive director of HKTDC. “Wine traders will benefit from its geographic location, its established network of buyers and sellers, and its ready access to a large and receptive market in Asia which would find it much more convenient to trade in Hong Kong.”

In a statement, Yip also noted that the proposals will help promote Hong Kong’s exhibition and convention industry, as well as promote the wine trading business. He said that by exempting the duty on wine, Hong Kong now also has the potential to become the Asian hub for wine sales and fine wine auctions, and promotions and investment.

The HKTDC predicts that the Chinese mainland and Hong Kong will become the world’s eighth largest wine consumers globally, while the Chinese mainland alone could consume some 50m cases of wine a year by 2017.

In response to the abolition of duties, several companies have since expressed interest in opening offices in Hong Kong, including Livex, the UK-based electronic exchange for fine wine.