Australia’s wine industry is celebrating a significant milestone as China announces the removal of restrictive tariffs on Australian wine imports, effective from Friday, March 29, 2024. The decision marks a pivotal moment for Australian winemakers who faced substantial challenges since the tariffs were imposed in 2020, impacting a $1.2 billion industry.
Lee McLean, Chief Executive of Australian Grape & Wine, hailed the move as a crucial decision benefiting the Australian wine sector. McLean emphasized the positive outcome resulting from diplomatic efforts by the Albanese government, highlighting the importance of collaboration between government and industry stakeholders.
Acknowledging the support of key government officials, including Foreign Minister Penny Wong, Trade Minister Don Farrell, and Agriculture Minister Murray Watt, McLean expressed gratitude for their unwavering support throughout the process.
McLean outlined collaborative efforts with the Australian Government and Wine Australia to ensure a coordinated approach to re-entry into the Chinese market, aiming to revitalize trade relationships and restore Australian wines to Chinese dining tables.
The South Australian Wine Industry Association (SAWIA) echoed sentiments of optimism, emphasizing the significance of the decision in strengthening Australia’s trading relationship with China. President Kirsty Balnaves underscored the importance of market diversification and conducting thorough market risk assessments to capitalize on emerging opportunities.
The South Australian Government announced a $1.85 million China Re-Engagement Support Package for the state’s wine exporters and grape growers, further bolstering industry prospects. SAWIA Chief Executive Inca Lee praised the initiative and commended the Premier for his proactive engagement in supporting efforts to enhance Australia’s relationship with China.
While trade and consumer sentiment for Australian wine remain positive in China, Dr. Martin Cole, CEO of Wine Australia, highlighted the need for Australian exporters to navigate evolving market dynamics. Dr. Cole emphasized support for the sector through tailored activities and market insights, facilitating a seamless re-entry into the Chinese market.
Treasury Wine Estates CEO Tim Ford hailed the news as cause for celebration, affirming the company’s commitment to the Chinese market and expressing anticipation for renewed opportunities. Ford emphasized the significance of the announcement in re-establishing Australian wine distribution in China, benefiting local winemakers and growers.
Andrew Calabria, Sales & Marketing Director of the Calabria Family Wine Group, emphasized the removal of tariffs as a pivotal moment for industry growth, acknowledging the resilience of Australian winemakers amidst challenging market conditions. Calabria expressed gratitude to government and industry stakeholders for their collective efforts.
James Wilson, Senior Market Manager at Casella Family Brands, welcomed the agreement, emphasizing the importance of fostering relationships with Chinese partners. Wilson highlighted plans for re-entry into the Chinese market, aiming to leverage consumer loyalty and expand brand presence.
Craig Garvin, Chief Executive of Australian Vintage, expressed optimism over the removal of tariffs, anticipating significant benefits for the wine export industry. Garvin emphasized collaboration with Chinese partners and the prospect of reconnecting with Chinese consumers, signaling a promising future for Australian wines in China.
