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Australian wine exports saw moderate growth from market diversification outside of mainland China, but the progress was no match to offset the loss from its former largest export destination.
China’s harsh anti-dumping tariff imposed on Australian wine has cost Australian wine industry AU$ 1 billion, according to the country’s wine trade body, resulting in a 30% decrease in Australia’s overall wine exports last year.
Secondary market activity for Australian wine experienced significant decline as a result of Chinese anti-dumping tariffs, as reported by Liv-Ex.
The World Trade Organization (WTO) has formally agreed to set up an investigative panel to examine China’s anti-dumping tariffs on Australian wines, a move that will likely anger China after it first blocked Australia’s request in September.
France has overtaken Australia to become China’s No.1 wine supplier, based on the latest Customs data, a result of the crippling tariffs slapped on Australian wines.
Australian wine exports to China were shaved off by over 95% since the punitive tariffs came into effect last November, painting a grim roadmap that leaves little breathing room for Australian wineries in the Chinese wine market for the next five years.
Global pandemic coupled with China’s crushing anti-dumping tariffs on Australian wines have shaved off 24% of profits for Australian wine giant, Treasury Wine Estates, parent company of Penfolds.
With crushing tariffs on Australian wines and international travel restrictions due to the coronavirus pandemic, Australia is sobering up to a costly China fallout.
A few Chinese-owned Australian wineries are reporting unfair treatment and abuse after a social media campaign emerged in Australia calling for consumers to boycott 41 Chinese-owned wineries in the latest wine-related trade spat.
China’s October wine imports surged for the first time this year as merchants rush to stockpile Australian wines before any hefty punitive tariffs that have now come into effect this month.