Wine sector worried after China’s beef, barley ‘warning shots’
Australian wine exporters fear they could be the next target if trade tensions escalate after China’s ‘warning shots’ over beef and barley.
Coronavirus News
Don't miss out on the headlines from Coronavirus News. Followed categories will be added to My News.
- Trade war fear as Australia, China relations sour
- Latest subscriber-exclusive giveaways, specials and prizes
Wine exporters have raised concerns for the state’s $1.79 billion industry as vital trade relations with China continue to sour.
China’s import bans on four Australian abattoirs and threats to lift barley tariffs have sparked fears for peak industry body Australian Grape and Wine, particularly after Chinese Ambassador Cheng Jingye’s warnings last month about repercussions for Australia’s push for a COVID-19 inquiry.
About $1.2 billion worth of wine is sent from SA to China annually, the biggest output of any state.
“With over a billion dollars of exports to there, plus it has got to be the springboard for COVID-19 recovery, we’re concerned,” Australian Grape and Wine chief executive Tony Battaglene said.
“We are cautiously optimistic that we won’t get caught up in this. Having said that there are no guarantees.”
Mr Battaglene said there had been no import issues or backlash from Chinese consumers to date.
He welcomed some “moderation” in Government rhetoric, saying ministers had shifted from pushing for an inquiry to saying Australia would support the European Union’s call for one.
MORE NEWS:
‘Why is America handling COVID-19 worse than Australia?’
Tory Shepherd: We need a vaccine for stupidity
Australian Strategic Policy Institute director Peter Jennings said China was sending “warning shots” to Australia to behave itself ahead of next week’s World Health Assembly.
“Whether they actually turn that into real action is harder to say. They can stop buying beef and barley but they’re punishing their own consumers if they do,” he said.
Wines by Geoff Hardy export sales manager Yuan Yuan had not heard any rumblings about the wine industry being targeted.
“Sales from mid-March have been picking up,” she said. Trade Minister Simon Birmingham said there was “no reason why there should be any measures against any other Australian industry”.
He said Australia would be supporting the EU’s push for a probe into COVID-19 origins.