China to review tariff on Australian wine

Australian Grape & Wine CEO Lee McLean has welcomed the Prime Minister’s announcement that China has agreed to expedite a review of its wine import duties, a step that could see the resumption of Australian wine exports to China.

“It has been a very difficult time for Australia’s grape growers and wine producers in recent years following the loss of China as our major trading partner, the global pandemic and various weather events, so this is very welcome news for grape growers and winemakers across the country,” McLean said.

“The review process by the Chinese Government is expected to take five months and Australian Grape & Wine will engage in and support that process in any way we can. We understand Australia will suspend the wine dispute in the World Trade Organisation pending the outcome of this review.”

McLean and John Hart OAM, Australian Grape & Wine President, visited Shanghai last week and met with the Chinese Alcoholic Drinks Association to discuss common objectives and significant opportunities for the two industries to collaborate in the future.

According to McLean, the re-engagement with China at the political, governmental officials and industry-to-industry levels has enabled positive dialogue.

“Australian Grape & Wine has worked closely with the Australian Government and the Department of Foreign Affairs and Trade over recent years to foster a mutually beneficial solution that advances the interests of both Australia and China. We acknowledge the work of ministers and officials in rebalancing the relationship with China, facilitating the resumption of trade in commodities such as coal, timber, barley and hay,” McLean said.

Before the import duties were imposed, the value of Australian wine exports to China was estimated to be $1.2 billion.

“Regardless of the outcome, we remain committed to diversifying our market presence and cultivating opportunities in markets across the world,” McLean said.

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