Australian winemakers and growers have expressed cautious optimism regarding the potential removal of tariffs on Australian wine exports to China. In return for this promising development, Australia has agreed to suspend actions taken against China in the World Trade Organization (WTO).
These tariffs, first imposed in November 2020, reached up to 200%, significantly impacting the thriving trade relationship between the two nations. At the time, wine exports to China were valued at over $1 billion annually.
South Australia, renowned as the country’s preeminent wine-producing state, has been deeply affected by these tariffs. Kirsty Balnaves, President of the South Australian Wine Industry Association, welcomed the news, recognizing it as a crucial initial step towards restoring the industry.
Kirsty Balnaves emphasized the considerable repercussions these tariffs had on the industry, stating, “We went from exporting around $1.3 billion worth of wine into China to now just over $10 million. So that gives you some enormity about how much these tariffs have impacted not only our industry but also regional communities.”
While acknowledging the challenges, Kirsty Balnaves expressed confidence in the five-month review timeline, indicating that, after a three-year absence from the market, a positive outcome within this timeframe would be a substantial step forward for the industry.
Australian wine producers and growers are closely monitoring the developments in the ongoing tariff review and are preparing for a potentially brighter future in their relationship with the Chinese wine market.
