With China wine tax feared to last five years, Australian wine makers look to other markets

Australian winemakers fear they could be frozen out of China for five years so the industry is turning its eyes to other markets. Here’s where they’re looking.

The wine industry will eye new markets in countries such as India, Kenya and Nigeria – as well as the US and Canada – after exports to China were hit with massive tariffs.

Australian Grape and Wine says the Chinese market could effectively be closed to Australian wine for up to five years.

The US and Canada are the biggest markets the industry will target for high-end wine.

China last week imposed interim tariffs of up to 212 per cent on Australian wine exports. Australian Grape and Wine chief executive Tony Battaglene said India and countries such as Kenya and Nigeria could be “slow burn” growth markets, along with South-East Asian nations and European regions, such as Scandinavia.

China would essentially be closed “for four to five years” for the Australian wine industry, Mr Battaglene said.

It was feared Beijing would impose further tariffs after its anti-dumping investigation was finalised. Under World Trade Organisation rules, anti-dumping tariffs can last a maximum of five years.

China’s current interim tariffs last until March 2021.

Australian winemakers fear they could be frozen out of China for five years so the industry is turning its eyes to other markets. Picture: AFP/ Daniel Leal-Olivas

Mr Battaglene and leaders from other industries hit by China’s trade disruptions were calling on the Federal Government to implement a 10-year strategy for market diversification, with long-term funding.

He said Australian wine would need more promotion in countries such as Canada and the US, but the government could assist with improving trade access to markets such as India and Africa.

“It’s a long, slow burner,” Mr Battaglene said. “But East Africa and India are markets where we need to start looking at the access barriers.”

Industry could also focus more on organics and sustainability to target markets such as Scandinavia, he said.

Trade Minister Simon Birmingham. Picture: Sam Mooy/Getty Images

Trade Minister Simon Birmingham and Agriculture Minister David Littleproud met with Mr Battaglene, the National Farmers Federation and representatives from the timber, seafood and grain sectors in Canberra yesterday to discuss the China situation and long-term trade strategies.

Senator Birmingham said the government was working to help by improving market access opportunities, trying to get tariffs and other trade barriers removed and through export market development grants.

GrainGrowers chief executive David McKeon said Vietnam, Japan, Africa or South and Central America could be options for premium malt barley after Australia essentially lost access to China when it imposed an 80.5 per cent import tax this year.

The Philippines, Indonesia or Saudi Arabia were other key destinations.

The US ambassador to Australia, Arthur B. Culvahouse, accused China of spreading “disinformation” in a statement backing Australia yesterday. Prime Minister Scott Morrison took to digital platform WeChat to reassure Chinese Australians amid the diplomatic row.