More Tariff Luck for Australian Wineries
The China-Australia Free Trade Agreement has proven successful year-after-year since its introduction in December 2015. The import tariffs, enforced by the Chinese Government, have now dropped to 5.6%; from 8.4% since it was established just over a year ago. This has seen Australian wine exports into China increase by over 50% in just the last 12 months. “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. Australia now has an advantage over the strong European wine market and joins France and Chile in the top three countries importing 80 percent of wine into the region. “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”, says Battaglene. China’s importation of wine is robust, increasing its import of bottled wines by 18.3 percent year-on-year to a total of US$1.97bn.