China has removed heavy tariffs on Australian wine exports, signifying renewed trade opportunities for exporters.  

The Chinese Ministry of Commerce removed its duties on Australian bottled wine on March 29, marking an end to effectively no market access since 2020.  

“Since 2020, China’s duties on Australian wine effectively made it unviable for Australian producers to export bottled wine to that market,” said Prime Minister Anthony Albanese in a joint statement with other ministers. 

Australia’s wine exports to China peaked at $1.3 billion in the 12 months to October 2020, according to Wine Australia. 

In 2020, Australia was China’s largest supplier of wine, holding a third of the market. 

Following the introduction of the tariffs, Australian wine exports to China fell to a value of $10.1 million in the 12 months to December 2023.  

During the period of high tariffs, Australian wine exporters managed to diversify their markets, including to Singapore, Hong Kong, Thailand, South Korea, Japan and the United Kingdom.  

However, this was not enough to replace the demand from China. 

Michael Carter, Head of CCIWA’s International Trade and Investment Centre, says with the China-Australia Free Trade Agreement (CHAFTA) in place, Australian wines now have access to one of the world’s most competitive markets. 

“The duties being lifted will be a catalyst to encourage wine exporters that have previously shipped to China to re-engage with such an important market, both in terms of value and growth for the WA wine industry,” he says. 

“It’s also an opportunity for wineries new to market to now develop a strategy to enter what is a large and burgeoning marketplace, with particular demand for mid to premium wines, which WA has a strong focus on.” 

Australia-China trade relationship progressing 

Carter says this announcement is a significant step forward for Australia and China’s bilateral trade relationship. 

“It amplifies the importance of what has been a long-standing trade and investment relationship,” he says. 

The Government says it “will continue to press for all remaining trade impediments affecting Australian exports to be removed, which is in the interests of both Australia and China”. 

Federal Trade Minister Don Farrell previously told the ABC that the Government would continue to press China on removing tariffs on Australian lobster and beef. 

  

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