Coonawarra vignerons have welcomed an agreement between the Australian and Chinese governments on a pathway to lift Chinese tariffs on Australian wine.
Tariffs of up to 220% were imposed on Australian wines in 2020, having a detrimental impact on many of the Limestone Coast’s wine producers and crippling the outgoing China market.
Coonawarra Vignerons executive officer Hugh Koch said the announcement would hugely benefit the region’s vineyards.
“This is excellent news for the industry, I think from a Coonawarra perspective we certainly welcome any way forward, it seems to be these tariffs which have been going have not done anything for anyone particularly,” he said.
“It’s certainly forced some difficult times on the industry and exacerbated the issues we now face.
“A pathway forward for China is going to allow us to come back and play in that space, we need to understand that time frame … and understand the market, it will be a different market.
“We will welcome the opportunity and hope it allows the opportunity to put some of the premium wines back into China which is where Coonawarra sits so well.”
Mr Koch said it would be useful for the industry to understand what the timeframe will be to access the market and have tariffs reduced.
“Effectively the Australian industry has to reset again the structures and distribution and sales back into China and that will take time,” Mr Koch said.
“I do not have the latest Chinese market industry information at the moment, but if we look into Hong Kong, that is our third biggest market and in June that was worth $3.5m. China was much, much more than that, but it’s a different economy now.
“It’s probably an indication there is a healthy appetite for Coonawarra wines and we hope we can grow that market significantly.”
Prime Minister Anthony Albanese announced the tariff news on Sunday and said Australia had reached a deal with China to move forward to solve its World Trade Organisation dispute over wine, potentially clearing the way for the resumption of imports that were worth $800m a year before the duties were imposed in 2020.
The Prime Minister said the process was expected to take up to five months.
The news follows SA Premier Peter Malinauskas taking a delegation of leaders from South Australia’s wine industry and other business sectors to China last month to advocate for the lifting of tariffs, and to explore further opportunities for trade and investment.
Premier Peter Malinauskas said the news was a significant development for thousands of South Australians whose lives and livelihoods have been “significantly hurt by these punitive tariffs”.
“We had genuine and honest engagement with the Chinese Government on this matter during my visit last month, and officials were well aware of the importance of this matter to the people of South Australia,” he said.
“This is a decision which has the potential to deliver benefits for people of both nations.
“South Australia is home to some of the most famous regions, historic estates and the oldest vines in the country – and Chinese consumers have demonstrated a strong affinity for premium and luxury goods, creating demand for high-quality South Australian wines.
“I thank the Prime Minister and his government for their advocacy and diplomacy.”
