China’s Ministry of Commerce has made a draft determination which could see the the removal of trade barriers to Australian wine.
The state government welcomed the interim decision which stated the duties on Australian bottled wine were no longer necessary.
Premier Peter Malinauskas said the move was a “significant and positive step towards reinstating the valued trading partnership between SA winemakers and Chinese consumers”.
“Our local wine industry took a huge hit in 2020, with widespread impacts across South Australia’s 3250 grape growers and 680 wineries when the tariffs were first imposed on our wine,” he said.
The decision came after advocacy and visits to China from both the state and federal governments.
Minister for Primary Industries and Regional Development Clare Scriven is currently in China, leading a delegation of wine and other agribusiness representatives.
The delegation would attend three key events, including two Taste of South Australia Showcases and a South Australian Wine Summit in Chengdu which will provide an opportunity for promotion to distributors, importers, buyers, retailers, and media in China.
This follow’s Mr Malinauskas’ trade mission in September last year, which was the first visit to China by a South Australian Premier since October 2019.
Prime Minister Anthony Albanese met with President Xi Jinping on his trip to China, while Foreign Affairs Minister Penny Wong and Federal Trade and Tourism Minister Don Farrell have also been busy advocating for Australian producers on trips to Beijing.
Mr Malinauskas’ visit demonstrated strong interest from Chinese importers and industry to re-engage directly with South Australian wine exporters.
“My visit to China in September was an important milestone in strengthening the relationship South Australia enjoys with the region, which continues to be our state’s top export destination for merchandise and is an important partner for our exporters, particularly our wine industry,” he said.
“Whilst excited for this development, we remain respectful of the Chinese process and don’t want to get ahead of ourselves.”
Ms Scriven said China’s response to South Australian wine had been “hugely positive”.
“We have a reputation for producing world-class wine and the Chinese market wants to be able to re-engage with our South Australian producers,” she said.
“We know that some wine producers have been doing it tough in our regions, but the interim measures announced today should give the industry hope that we will once again be making wine destined for China.”
South Australian Wine Industry Association chief executive Inca Lee said the association welcomed the interim decision by the Chinese govenrment to remove import duties on Australian wine.
“While this interim decision is positive for South Australian grape growers and winemakers, we await the final determination which is due later this month,” Ms Lee said.
In October 2020, at its peak and one month prior to the start of tariffs, China was South Australia’s largest wine export market, with exports valued at $946.5 million, accounting for 47.2 per cent of South Australia’s wine exports globally.
For the year ending January 2024, wine exports to China were valued at $2.8 million, with a volume of 1.05 million litres.
