Margaret River wine industry welcomes thaw in Chinese tariffs saga

The wine industry is breathing a sigh of relief with news coming through late last week that Chinese authorities look poised to relent on long-standing tariffs strangling the sector.

While Margaret River vignerons – as high-quality, lower volume exporters – were less exposed to the political ructions widely seen as the Chinese Government punishing Australia for public criticism during the pandemic, the news on March 12 was still welcomed.

Wine Australia said an interim decision from China’s Ministry of Commerce found that “the imposition of anti-dumping duties and countervailing duties on imports of relevant wines originating in Australia are no longer necessary” due to changes in the Chinese wine market.

“Wine Australia is pleased the review on these duties is progressing, recognising that a final decision is still to come,” a spokesperson said.

“We will continue to work in close collaboration with the Australian Government and sector representatives to monitor and support our sector’s interests.

“We are working to provide relevant details to the businesses in our sector as new information becomes available.”

Howard Park Wines sales director Richard Burch said vignerons across the country would be celebrating.

While Margaret River exporters were less exposed to volatility in trade with China due to niche high-end wines, the tariffs saga had driven some WA producers to the wall.

“It’s been challenging,” Mr Burch told the Times.

“It’s almost 3½ years since it happened.

“The Australian wine industry has changed a lot during that time, especially when you lose your biggest market.”

While Howard Park had pivoted to embrace other markets, some smaller producers were not so fortunate.

The east coast and South Australia in particular were now facing a market glut thanks in part to the lack of Chinese exports.

“There was a lot of wine going to China, and when that stopped, you can’t just turn wine off like a tap,” Mr Burch said.

Wine of WA chief executive Larry Jorgensen was cautiously optimistic about good news being confirmed by month’s end.

“It’s still an interim decision and we’re respecting the process being undertaken to finalise and confirm the decision,” he said.

Australian Grape & Wine chief executive Lee McLean said resumption of trade with the country’s biggest export market was important, despite confirmation not yet finalised.

“As such, we remain cautiously optimistic about the forthcoming decision and will await the Chinese Ministry of Commerce’s final determination,” Mr McLean said.

The peak body also thanked efforts undertaken by partners in industry as well as both Governments to get trade back on track.