$500m of Aussie Wine Heads To China 1 Year On From China-Australia Free Trade Agreement Kicking Off

$500m of Aussie Wine Heads To China One Year On From China-Australia Free Trade Agreement Kicking Off

Over the last 12 months, China has become Australia’s most valuable wine export market.


With the recent arrival of Southern China Airlines in to Adelaide, the Mercedes-Benz Adelaide Fashion Festival featuring Chinese fashion designers in its program, and ever-increasing South Australian exports to the country with the world’s largest population, Chinese ties with Adelaide, and Australia as a whole, continue to grow.

The wine industry is another area, which has been massively impacted by the strengthening international ties, and in particular, the introduction of the China-Australia Free Trade Agreement (ChAFTA). Since its introduction one year ago (happy b’day ChAFTA!), Australian winemakers have enjoyed a substantial competitive advantage over our European counterparts with tariff reductions.

Australian wine exporters have made the most of the preferential tariff rates into China and China is now Australia’s most valuable wine export market. In the last 12 months, exports to mainland China have grown by over 50% per cent to just under $500 million. To put this in context, just a decade ago, Australian wine exports to China were valued at $27 million.

The trade benefits of the China–Australia Free Trade Agreement, and the growing Chinese middle class’ increased interest in wine, have meant that more than a third of Australian wine exports priced $10 and more per litre FOB, are now destined for China (valued at almost $200 million and up over 60 per cent).

‘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.

He went on to say ‘The Australian Governments’ 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’.

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