Australian winemakers and growers are optimistic that tariffs on local wine imposed by China will soon be removed, after the Chinese government announced that it will start a 5-month review on the tariffs on Australian wine.
In return, Australia has agreed to suspend action against China in the World Trade Organization.
In November 2020, China imposed a whopping 200% tariffs on Australian wine. South Australia, which is the highest producer of wine in the country saw its wine exports to China dropped from A$1.3 billion (US$857 million) to just over A$10 million (US$6.6 million) after the tariffs took effect.
Despite the positive news, Australian wine producers are seeking to diversify their markets to US and Europe, which they perceive to be more stable in the long term. Furthermore, the absence of Australian wine in China has led to foreign wine players from South Africa, France and Italy filling up the vacuum in China market. It will take some time before Australian wine could make a strong comeback in China.
