Market Morsel: Something else to whine about
In a further blow to the Australian agricultural sector the Chinese government has announced an investigation into dumping of wine. This is hot on the heals of a hike to Australian barley tariffs earlier in the season due to a negative finding of anti-dumping against Australia.
What is the state of play for Chinese – Australian wine trade?
- Current wine tariffs for Australian wine exports to China are set at zero
- China is Australia’s largest export customer (it took nearly 34% of Australian wine exports in 2018, compared to 16% for USA and 14% for the UK)
- In 2018 Australia was China’s number one importing nation at just over 30% of total imports. Closely followed by France, at 29% and then Chile at 14%.
- China is a net importer of wine to the tune of $US2.1 billion per annum
An adverse finding could see a tariff reapplied to Australian wine significantly impacting our competitiveness into a key market.