GRAPE WALL OF CHINA

WHAT’S HAPPENING?

China’s Ministry of Commerce is conducting an anti-dumping investigation into wines imported from Australia. China is also considering a “countervailing duties investigation”, which would look at whether Australian wine exports are receiving and benefiting from government subsidies.

WHAT’S THE COUNTER ARGUMENT?

Australia had the second-highest average price in terms of wine imports into China in the first half of 2020, so the argument about the dumping of cheap wine is not correct. Australian wine is not sold at below market prices and exports are not subsidised.

WHAT’S THE TIMEFRAME?

It’s expected the investigation will be completed by August 18, 2021 but could be extended until February 18, 2022.

WHAT’S AT STAKE?

Australia exports over $1 billion of wine to China, out of $2.9 billion in total wine exports to the world. South Australia is by far the biggest wine exporter to China, with Treasury Wines leading the pack. Almost 46 per cent of Queensland and Victorian exported wine goes to China. The figure is 41.5 per cent for WA, 43 per cent for SA.

WHAT ELSE CAN BE DONE?

Diversification of export markets is happening. Denmark, Singapore, the UK, Indonesia and Sweden are growing markets.

(Source: Australian government)