By Andy Young

Australian wine now has a substantial competitive advantage over its European counterparts thanks to a further fall in the import tariffs imposed by the Chinese Government.

As of 1 January 2017 the tariffs have dropped to 5.6 per cent, down from 14 per cent when the China-Australia Free Trade Agreement was first introduced in December 2015.

The agreement has been hugely beneficial to Australian wine exporters, as wine exports to mainland China have grown by over 50 per cent in the last 12 months. As TheShout reported last year, China is now Australia’s most valuable wine export market.

The trade benefits of the China–Australia Free Trade Agreement, and the growing Chinese middle class’ increased interest in wine, have meant that more than one-third of Australian wine exports priced $10 and more per litre FOB, are now destined for China (valued at almost $200 million and up over 60 per cent). 

"The demand for our premium wines in China shows no sign of abating and the next round of tariff cuts will give us a further advantage over our next biggest rivals in France," said Tony Battaglene, Chief Executive of the Winemakers’ Federation of Australia.  

He went on to say" "The Australian Government's continued emphasis on pursuing trade opportunities and reducing market access barriers is welcomed by the wine sector and the benefits of this will flow on to rural and regional Australia over the next decade."

The Shout Team

The leading online news service for Australia's beer, wine, spirits and hospitality industries.

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