A California Republican congressman has urged the Trump administration to prioritise opening India’s market to California wines, as US winegrape growers face declining domestic consumption, restricted access to Canada and regulatory concerns over competition from imported products.
Congressman James Gallagher has written to US Trade Representative Jamieson Greer, calling for India and Vietnam to be treated as priority export destinations while Washington pursues measures to improve market access for American wine producers.
In the letter released on Thursday, Gallagher said the wine industry was facing mounting pressure from weakening demand and uncertainty surrounding international trade. He noted that industry leaders viewed India and Vietnam as promising growth markets but faced significant entry barriers amid ongoing tariff negotiations.
“Industry leaders have identified countries such as India and Vietnam as promising high-growth markets, but the barrier to entry is still high due to ongoing tariff negotiations,” Gallagher wrote.
He urged the US administration to pursue opportunities in both countries while working to restore access to Canada, where American wine producers have seen their market opportunities significantly reduced.
The appeal comes as India and the United States continue negotiations aimed at expanding bilateral trade and reducing barriers to market access.
Gallagher also called for a review of US wine-labelling rules, arguing that products marketed as American wine can contain imported agricultural ingredients without disclosing their origin on the label.
Under the rules described in his letter, wine labelled “United States” or “American” must contain at least 75 per cent American-grown agricultural products and be fully finished in the country. Gallagher said the allowance for foreign-grown ingredients could weaken demand for California grapes, depress prices and make it harder for consumers to distinguish products made entirely from domestic agricultural ingredients.
He urged the US Trade Representative to work with the Treasury Department and the Alcohol and Tobacco Tax and Trade Bureau to examine the regulations.
The congressman also raised concerns about federal duty drawback provisions that can allow excise taxes paid on imported wine to be refunded when qualifying substitute wine is exported. He argued that the arrangement could make imported bulk wine more attractive than domestically produced alternatives.
Additionally, Gallagher called for scrutiny of bulk products imported from Canada that, he said, do not meet the US definition of wine but receive wine-related customs and tax treatment.
Natalie Collins, president of the California Association of Winegrape Growers, welcomed the intervention, saying federal policies should not make it harder for American-grown grapes to compete.
As the 2026 harvest approaches its conclusion, Gallagher urged Washington to address the industry’s concerns and expand export opportunities for California producers.
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