Hong Kong Tariffs: As part of its new budget, the Hong Kong government announced on February 28th an immediate reduction of the territory's import tariff on wine from 80% to 40%. Our government, together with those of the leading wine-producing nations and the local tourism and restaurant sectors, had been lobbying Hong Kong to lower the tariff, which had been much higher than China’s (14%) and neighboring Macau’s (15%). The announcement has been widely applauded by the industry and has resulted in announcements of immediate price reductions by importers and retailers. The Hong Kong government has left open the possibility of further reductions to help make the territory a regional wine center should the current reduction receive broad community support.