Following China’s decision to remove all trade barriers on Australian wine, state governments have announced a range of support measures to assist winemakers in their efforts to re-enter the lucrative market.

China’s Ministry of Commerce (MOFCOM) announced last week that tariffs of up to 218% that had been applied to Australian wine in 2020 would be lifted on March 29.

“The Ministry of Commerce ruled that in view of the changes in the relevant wine market conditions in China, it is no longer necessary to impose anti-dumping duties and countervailing duties on imported relevant wines originating in Australia,” the Ministry of Commerce said in a statement.

NSW wine industry support

To capitalise on the tariff removal the NSW Government will swiftly roll out events, initiatives and in-market activations in partnership with industry to assist companies to re-enter the market, including:

• A NSW Wine Destination e-commerce training program
• A New and Hidden Gems Chinese Buyers Mission to NSW
• A NSW Going Global Export Program focused on beverages to Greater China
• A roadshow reintroducing the NSW wine industry to Chinese importers and distributors.

China is NSW’s largest two-way goods trading partner, valued at $56.9 billion in 2022-23 and growing. NSW is also the second-largest wine-producing state in the country and employs around 50,000 people across the state.

Last year NSW ran four NSW wine campaigns in Greater China to reconnect producers with importers and distributors to drive sales. The campaigns resulted in the signing of several commercial agreements.

President of the NSW Wine Industry Association Mark Bourne said: “China has historically been a valuable export market for NSW wine producers, with strong relationships formed over the years. The opportunity to do business again on a level playing field and re-engage with Chinese wine lovers new and old, is definitely the good news producers were
hoping for from this review.”

South Australia to provide $1.85 million in support

The South Australia Government will provide a $1.85 million China Re-Engagement Support Package for South Australian wine exporters and grape growers.

The support package, to be rolled out over the next two years to June 2026, will provide South Australia’s wine sector with in-market insights and capability building to effectively re-engage with the China market in a risk-managed manner.

It was developed by the Department for Trade and Investment (DTI) in collaboration with the South Australian Wine Industry
Association (SAWIA) and the Department of Primary Industries and Regions, South Australia (PIRSA).

The $1.85 million support package comprises five key components:

• Two-way market activation and immersion – $600,000
• Promotional marketing and communication campaigns – $500,000
• Wine export advisor – $400,000
• Technical cooperation – $250,000
• Exporter Capability Building – $100,000

In October 2020, prior to the start of tariffs, China was South Australia’s largest wine export market, with exports valued at $946.5 million, accounting for 47.2% of South Australia’s wine exports globally.

The SA Government said a September visit to China by Premier Peter Malinauskas and a delegation of food, wine and
agribusiness CEOs had seen strong interest from Chinese importers and industry to re-engage directly with South Australian wine exporters.

To support two-way market activation and immersion, DTI and its partners will facilitate opportunities for SA wine exporters to attend key in-market industry events in China in 2024 and 2025, as well as coordinate trade familiarisation visits for
leading Chinese wine importers to experience South Australia’s wine regions.

In preparation for the removal of the tariffs, the Government delivered China Market Insights Workshops to almost 200 South Australian wine industry businesses at four events held in Coonawarra, Barossa, Riverland and the Adelaide Hills in late
January and early February.

South Australian Wine Industry Association Chief Executive Inca Lee said: “The announcement by the Premier of the China Re-Engagement Support Package for South Australian wine exporters is warmly welcomed by industry.

“We also thank the Premier for his foresight in leading a delegation to China in late 2023 in support of the Australian Government’s ongoing efforts to strengthen Australia’s relationship with China.

“These collective efforts will result in South Australian wine companies once again being able to share our wines with Chinese consumers.

“South Australian wine has made a deep impression on the Chinese consumer who values quality premium products, and we know this sentiment has not been diminished by the pause in our trading relationship.”

Western Australia Government backs wine exporters 

Since 2021, the State Government has worked closely with the wine industry and Wines of Western Australia through the Wine Industry Export Growth Partnership to drive wine export competitiveness and increase the value of Western Australian wine exports.

The partnership is supported by industry funding of $3 million, matched with State Government funding of $3m, over a 4-year period.

In coming months, the partnership will assist Western Australian wine exporters to re-establish key relationships and sale channels in China.

Prior to the introduction of tariffs, China was Western Australia’s largest overseas wine market with 2.1million litres of wine exports to China in 2019-20, valued at $18.3 million and representing 38% of the state’s wine exports.

China abolishes tariffs on Australian wine