(Decanter) - The value of US wine exports fell 5.5% to $1.53 billion in 2017, with shipments to the European Union suffering a near-20% revenue slump, according to data from the US Dept of Commerce.

California’s Wine Institute – the state is responsible for 97% of exports – blamed the decline on the strong dollar, ‘heavily-subsidised foreign producers’ and competitors making free trade agreements in key markets.

Export volumes fell even further, declining 7.9% to 380m litres, or 42.2m cases, with shipment volumes to the EU down by more than 10% to 197.8m litres.

The EU remains the US’ most lucrative export destination, with revenues of $553.1m in 2017, ahead of Canada at $443.9m (up 2.9%), where volumes declined 5.4% to 84m litres.