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  • Writer's pictureCrest Economics

Australian Wine to Return to China- Apr 2024

In a significant development for the Australian wine sector, China has officially announced the removal of previously imposed tariffs on Australian wine, marking the end of a challenging period for Australian grape farmers and wine producers. This decision has been met with a wave of optimism across the Australian agricultural community, as China is one of the largest markets for Australian wine exports.


For years, Australian wine producers faced stiff tariffs in the Chinese market. In 2020, Beijing had imposed tariffs of above 200% on Australian wine product, at the height of the diplomatic dispute between the two countries. During this time, it was unviable for Australian producers to export bottled wine, losing out on a market worth $1.1bn to the 2019 economy.


The removal of these tariffs comes as a breath of fresh air for grape farmers and will see the re-entry of Australian bottled wine into the Chinese market. In turn, Australia will also discontinue legal proceedings in the World Trade Organisation. This decision to foster cooperation between Australia and China further strengthens trade relations with China. Accordingly, this sees China remaining as Australia’s number one trading partner and export destination for several commodities.


The strengthening of this $317bn trade relationship also props up the growth of the domestic Australian economy. With China demanding high-quality wine, production in Australia, specifically the Hunter region is stimulated. Unemployment rates within the economy are positively impacted and services exports, such as tourism to the region is also fostered.


Ultimately, as the industry looks forward to a resurgence in wine exports, the focus now turns to maximising the opportunities this new chapter presents, ensuring Australian wine can once again thrive in one of its most crucial markets.



 

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