Australian wine producers celebrate exports to China
Updated 14:23, 17-Jan-2019
By Greg Navarro
["china"]
02:04
Australian wine producers who export to China have an added reason to celebrate this year. Tariffs on those exports, once as high as 14%, were completely eliminated at the start of 2019 through the China Australia Free Trade Agreement.
Tamburlaine Wines Managing Director Mark Davison. /CGTN Photo

Tamburlaine Wines Managing Director Mark Davison. /CGTN Photo

“If you are going to compete in that market you've got to compete on price as well as novelty and I think the value has been the Australian free trade agreement,” said Tamburlaine Wines managing director Mark Davidson.
Australia's wine producers aren't the only winners this year. Tariffs have been gradually eliminated on several agricultural exports to China since the Free Trade Agreement took affect more than three years ago. That includes beef, infant formula, and certain types of fruit.
 Tariffs on Australian Beef Exports to China have been eliminated. /CGTN Photo

 Tariffs on Australian Beef Exports to China have been eliminated. /CGTN Photo

“The Free Trade Agreement is only going to aid what is a wonderful opportunity for Australian producers to get well and truly entrenched in a market with huge capacity,” said Davidson.
While tariffs are dropping, demand for Australia's agricultural products has been rising steadily, fueled in part by China's rising middle class. In 2017, China bought about 116 billion Australian dollars worth of goods from Australia. That's a quarter of the total Australia exports to the world, and wine exports to China increased by about 65% over a 12 month period.
“The Free Trade Agreement is only going to aid what is a wonderful opportunity for Australian producers to get well and truly entrenched in a market with huge capacity,” said Davidson.While tariffs are dropping, demand for Australia’s agricultural products has been rising steadily, fueled in part by China’s rising middle class. In 2017, China bought about 116 billion AUD worth of goods from Australia. That’s a quarter of the total Australia exports to the world, and wine exports to China increased by about 65% over a 12 month period.
 Australia's Hunter Valley wine region. /CGTN Photo

 Australia's Hunter Valley wine region. /CGTN Photo

New South Wales Farmer's Association policy director Kathy Rankin believes it's still early to really gauge the impact of the China Australia Free Trade Agreement on Australian farmers.
“I think that it has got an opportunity to really build some capacity for Australian primary producers,” she said.