Global tariff wins for Australian winemakers
There's speculation that Australia will overtake France as China's biggest source of imported wines following import tariffs dropping to 0% January 1.
The move is part of the Free Trade Agreement between Australia and China. By contrast, French and other imported wines currently have a 14% import tax imposed on them.
Australia ranks as China’s second biggest source for imported bottled wines with an export value of more than US$682 million in 2017, behind France’s US$1.05 billion, according to Chinese customs data.
Meanwhile, the Trans-Pacific Partnership has also come into effect, allowing Australian winemakers to access newer and bigger markets in countries including greater access to Canada, Vietnam, Mexico and Malaysia.
“Opportunities for Australian exporters are vast,” Trade Minister Simon Birmingham said.
“From our wine producers in South Australia’s Barossa Valley to our dairy farmers in Victoria and our sugarcane farmers in Queensland, the TPP-11 will open more doors for Australian farmers and businesses.”
Tony Battaglene, chief executive of the Winemakers Federation of Australia, told The Australian the removal of the 20% Mexican tariff on Australian wine would allow locals to compete on a level playing field with Mexican producers.
“The wine and spirits annex of TPP-11 is the first of its kind, and will bring greater certainty to Australian wine exporters by addressing non-tariff-barriers,” Mr Battaglene said. “These barriers can make the export process more costly and impose unreasonable requirements on exporters.”