Wine Australia data in March 2021 shows hit of China tariffs hike on South Australia's half share of production
The Wine Australia report in March 21 showed wine export growth in the United Kingdom, the United States of America, Canada and New Zealand provide some counter to the China fall.
With South Australia producing half of Australia’s wine – and 60% of that being exported – the crippling tariffs imposed by biggest customer China in November 2020, and extended for five years in March 2020, brought a major challenge.
The value of exports to China dived to just $12 million for December 2020 to March 2021 from $325 million in the same period 12 months before. Although Australia’s overall wine exports in the 12 months to March 2021 dropped by 4% to $2.77 billion, its next four biggest four next biggest markets – the United Kingdom, the United States of America, Canada and New Zealand – all showed strong growth during that time.
Exports to China in the 12 months fell 18% to $1.02 billion after the Chinese ministry of commerce announced anti-dumping and countervailing investigations and imposed interim countervailing duties of 6.3–6.4% and anti-dumping tariffs of between 116.2% and 218.4% on bottled wine.
South Australian Wine Industry Association chief executive Brian Smedley said the moving average total would lead to more declines in Chinese figures. “We’d built up our exports over 15 years or so to China … we haven’t simply tapered off – we’ve gone over that cliff in relation to the export of bottled wine”. Smedley said South Australia’s red wine emphasis had suited Chinese tastes.
