The news of the removal of tariffs on Australian wine imports into China has come at a crucial time for Australia’s wine industry which is currently experiencing one of its most challenging periods in recent times. As a direct consequence of this industry stress, many producers and exporters have found themselves less equipped to invest in reestablishing their presence in the Chinese market.
To combat this, various Australian State Governments have launched tailored programs designed to kickstart Australian wine exports into China. Thus far, programs have been announced by South Australia, New South Wales, Western Australia, and Victoria.
South Australia
South Australia has announced the outroll of its $1.85 million China Re-Engagement Support Package, developed by the Department for Trade and Investment in collaboration with the South Australian Wine Industry Association and the Department of Primary Industries and Regions, South Australia.
The package will be implemented over two years and is divided into the following five 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
More information about the South Australian program and details on how to get involved can be found on the package’s website here.
New South Wales
NSW State Government has announced a it will be conducting a variety of events, initiatives and in-market activations to help its producers to re-enter the Chinese market. Planned activities include:
- A NSW Wine Destination e-commerce training program;
- A New and Hidden Gems Chinese Buyers Mission to NSW;
- Bespoke business matching;
- A NSW Going Global Export Program focused on beverages to Greater China;
- And a roadshow reintroducing the NSW wine industry to Chinese importers and distributors.
“China is NSW’s largest two way trading partner and second largest economy in the world, however since this tariff was introduced, Australia has seen a 99% reduction in wine exports as of 2023,” said Anoulack Chanthivong, Minister.
“We understand that the market has changed, and conditions will be different this time around.
“Our focus will be to support NSW wineries to understand the new environment, re-enter the market and re-establish export pipelines.”
More information about available support can be found at Investment NSW.
Victoria
The Victorian Wine Export Program 2023-2025 has been established to assist Victorian wine exporters in entering and expanding into the US, UK, Asia, and China through targeted international trade initiatives and activities.
The $3.8 million program is being delivered by Wine Victoria in collaboration with financial partner Global Victoria, the State Government’s trade facilitation agency and gateway.
“We are delighted to be delivering this export program over the next two years across the four focus markets,” said Stephanie Duboudin, CEO at Wine Victoria.
“Since 2022 we have been delivering a US export program in collaboration with Global Victoria and the new grant enables Wine Victoria to continue to provide significant opportunities for new and existing exporters.”
More information can be found on Wine Victoria’s dedicated page.
Western Australia
Western Australia State Government has been supporting its exporting wineries through its Wine Industry Export Growth Partnership, performed in collaboration with Wines of Western Australia.
The Wine Industry Export Growth Partnership is being directly supported by industry funding of $3 million, matched by State Government, over a four year period starting in 2001.
“Since 2021, the State Government has worked with closely with producers and exporters to support this valuable industry,” said Roger Cook, Premier.
“We will continue to work with them to re-establish key relationships and promote their products in China.”
Prior to the tariffs, WA exported 2.1 million litres of wine to China at a value of $18.3 million, representing 38% of the state’s total exports.
“WA wine exports to China were on the rise prior to the tariffs, more than doubling in value between 2010 and 2020,” said Minister for Regional Development Don Punch.
“Full resumption of bilateral trade will be a significant benefit for both markets, and the WA Government welcomes these positive steps given our close ties with the Chinese market.
“The State Government will work with WA’s wine industry to re-engage with the China market and support the promotion of premium wine in market.”
The tariffs on wine imports into China were lifted on Friday 29 March. Despite being much needed positive news for the industry at a crucial moment in time, experts warn that it is unlikely the Chinese market will rebound to pre-tariff levels of consumption.
