The South Australian Government has embraced the recent announcement from China, which details a provisional set of suggestions that may pave the way for the elimination of trade impediments on Australian wine. This development signifies a significant step towards reviving the once-thriving partnership between local wine producers and the lucrative Chinese market.
Outlined in the interim draft determination by China’s Ministry of Commerce, the proposal suggests the removal of duties on Australian bottled wine, marking a potentially pivotal moment for the industry. While not yet finalised, this decision holds the promise of reinstating robust trade relations between South Australia and China.
“This is a significant and positive step towards reinstating the valued trading partnership between SA winemakers and Chinese consumers,” Premier Peter Malinauskas said.
“Whilst excited for this development, we remain respectful of the Chinese process and don’t want to get ahead of ourselves.
“Our local wine industry took a huge hit in 2020, with widespread impacts across South Australia’s 3250 grape growers and 680 wineries when the tariffs were first imposed on our wine.”
Reflecting on the peak of exports in October 2020, when China stood as South Australia’s largest wine export market, valued at an impressive $946.5 million. However, in recent times, trade barriers have led to a decline, with wine exports to China plummeting to $2.8 million by January 2024.
Amidst these challenges, there has been resolute advocacy at both state and federal levels for the removal of restrictions on wine exports. Minister for Primary Industries and Regional Development, Clare Scriven MLC, has been actively engaged in leading delegations to China, fostering dialogue and collaboration within the wine and agribusiness sectors.
“I am currently in China advocating for SA wine producers and the response to our local drops in this huge import market has been hugely positive,” Clare said.
“We have a reputation for producing world-class wine and the Chinese market wants to be able to re-engage with our South Australian producers.
“We know that some wine producers have been doing it tough in our regions, but the interim measures announced today should give the industry hope that we will once again be making wine destined for China.”
Building on previous initiatives, such as Premier Peter Malinauskas’ trade mission and Prime Minister Anthony Albanese’s meetings with Chinese leadership, significant strides have been made towards stabilizing trade relations. Notably, China has already lifted trade impediments on several Australian products since May of the previous year, underscoring a positive trajectory.
Recognizing the importance of supporting the local wine industry, the State Government has undertaken various strategies to mitigate the impact of tariffs. This includes facilitating engagement between South Australian exporters and Chinese importers, as evidenced by the Premier’s CEO delegation’s visit last year.
Furthermore, the government has prioritised education and preparedness within the wine sector through workshops and briefings. These initiatives, delivered in collaboration with industry associations and government departments, provide invaluable insights into the Chinese market, ensuring local producers are well-equipped to navigate potential changes in trade regulations.
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