A union in Norway fears a future rise in cross-border trade with Sweden in wine. The Norwegian wine and brandy importers' union, VBF, said yesterday that trade with Sweden will rise by up to 20%, following the reduction of wine taxes in Sweden.

The Swedish Government plans to reduce wine taxes by 25% to NKK15 (US$2.20) per litre in the future, while the same tax in Norway currently stands at NKK43.3 (US$6.40) per litre. The difference between the two country's wine taxes wil result in cross-border trade and wine smuggling, the VBF fears.

The union believes that the Norwegian Government should look at reduce the wine tax in line with Sweden's.