The World Wine Trade Group (WWTG), a trade body representing New World wine producers, has signed an agreement on wine labelling that could reputedly save millions of dollars year.

Wine industry and Government representatives from the US, Chile, Australia, Argentina, New Zealand and Canada have signed a "treaty" on standardising the information on wine labels.

In future, when a product is to be sold in several markets, winemakers and exporters will no longer have to attach a different front label for each destination.

Australian Trade Minister Warren Truss said the deal could save the Australian wine industry A$25m (US$19.5m) a year.

"Not only will production costs for Australian wine growers be reduced but it will become easier to promote our wines and expand into new markets," Truss said.

Exports to WWTG member nations account for 47% of Australia's wine exports, according to local industry figures.

Truss' counterpart in New Zealand, Phil Goff, added: "Industry projections are that wine exports will exceed 70m litres, worth nearly NZ$700m (US$488m), this year, with further increases to over NZ$1bn forecast within a few years.

"Agreements that facilitate trade, such as this, help the development of an industry which is becoming increasingly important to New Zealand."