Australia’s wine industry is currently grappling with a surplus of billions of liters of wine, with limited avenues for swift sales, according to a report by the Financial Times. This surplus has arisen primarily due to a substantial decline in wine exports, triggered by an ongoing trade dispute with China.
China had long been the largest importer of Australian wine. However, diplomatic relations between the two nations took a downturn during the Covid-19 pandemic in 2020. In response, China imposed punitive tariffs on Australian wine imports, resulting in a significant loss of market share for Australian winemakers to their counterparts from other countries.
While there are signs of improved relations between the two nations, the road to recovery remains lengthy and uncertain for Australian winemakers. The industry is eagerly anticipating a resolution to the trade dispute and a restoration of its once-thriving Chinese market presence.
