Australian wine growers re-enter China

The Australian wine industry is already reaping the benefits of China lifting trade tariffs on wine exports into the country. 

Over the past two years, the Australian wine industry, especially the commercial sector in key growing regions, has faced significant challenges.

These include a multi-year tariff imposed by China that halted all bottled wine exports, ongoing impacts from COVID-19 affecting supply chains and costs, an economic environment of reduced consumer spending, declining global wine consumption, and shifting consumer preferences towards
premium wines.

In November 2020, China imposed provisional tariffs, ranging from 107 per cent to 212 per cent, on Australian wine.

The impact on the Australian wine market was huge. Prior to the tariffs, China was Australia’s largest wine export market, with exports valued at over $1 billion annually.

The Australian wine industry faced significant economic losses due to the reduced access to the Chinese market. Many producers sought alternative markets and increased efforts to promote Australian wine in other regions.

China investigated allegations of dumping and subsidisation, claiming that Australian wine producers were selling wine in China at unfairly low prices, while the Australian Government strongly denied the dumping and subsidy allegations, describing the tariffs as unjustified.

Before aiming to resolve the issue through diplomatic channels and by appealing to international trade bodies.

As a result, the March announcement was a hugely welcome one to the Australian wine industry.

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https://www.foodmag.com.au/australian-wine-growers-re-enter-china/