China tariffs see Australia’s wine exports suffer ‘not unexpected’ decline

Australia’s overall wine exports declined by 10 per cent in volume and by 19 per cent in value to A$2.08 billion (US$1.44 billion) in the year ended June 30

Exports to China, including Hong Kong and Macau, fell by 74 per cent in value after Beijing imposed duties on containers of up to two litres in March last year

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Exports to China, including Hong Kong and Macau, fell by 74 per cent to A$206 million, after Beijing imposed duties of between 116.2 per cent and 218.4 per cent on its wines in containers of up to two litres – in March last year. Photo: EPA-EFE

Published: 1:00pm, 26 Jul 2022

Australia’s wine exports showed a “not unexpected” decline during the 2021-22 financial year due to continuous drop in sales to China and the ongoing coronavirus pandemic, according to official figures from an Australian statutory body.

Overall wine exports declined by 10 per cent in volume to 625 million litres and by 19 per cent in value to A$2.08 billion (US$1.44 billion) in the year ended June 30, according to Wine Australia’s export report released on Tuesday.

Exports to China, including Hong Kong and Macau, fell by 74 per cent to A$206 million after Beijing imposed duties of between 116.2 per cent and 218.4 per cent on Australian wines in containers of up to two litres in March last year.

This has created an “extremely challenging” operating environment for many Australian wine exporters, the report said, with the ongoing impact of the coronavirus, including severe shipping delays and increased freight costs, as well as rising inflation, business costs and interest rates also taking a toll.

“When mainland China is excluded from the data, exports increased by 5 per cent in value to A$2.06 billion, an increase of A$105 million – the highest value since 2009–2010,” said Wine Australia manager for market insights, Peter Bailey.

China, including Hong Kong and Macau, remained the third most valuable export destination by value behind the United States with A$436 million and Britain with A$421 million and ahead of Canada and Singapore. Taken separately, exports to Hong Kong fell by 9 per cent to A$170 million.

“The key contributors to the value growth included Singapore, the United States, Malaysia, Thailand, India and New Zealand,” added Bailey.