New Zealand officials are keeping a close watch on discussions about tax reform for Australia's wine industry, says Food Safety Minister Jo Goodhew.
Australian winemakers want to stop New Zealand exporters claiming lucrative tax rebates on this side of the Tasman under the C-E-R free trade deal.
Ms Goodhew said the New Zealand government would look closely at how Canberra's tax white paper may affect the C-E-R deal.
She said it was too soon to tell whether New Zealand will need to seek arbitration at the World Trade Organisation.
She said said there was recognition within New Zealand's wine industry that Australian winemakers were displeased with the current arrangement.
"The New Zealand wine industry has grown very rapidly, and changing any factor that affects their revenue will be very important to them."