Australian winemakers and exporters are hoping for a boost in profits from this week, as tariffs to China are further reduced as a result of the China-Australia Free Trade Agreement (ChAFTA). China is the nation’s largest export market for wine, with the export side of the industry now worth almost $375 million annually, however, with the further tariff reductions, China’s middle class will be able to access more wines at a cheaper price, something exporters hope will contribute to a bigger bottom line…Full Article: China Daily Jan 2017
- In January 2017, Chinese import tariffs for Australian wine dropped to 5.6%. Prior to ChAFTA, Australian wine exports had a 14% import tariff rate.
- In January 2018, Chinese import tariffs for Australian wine will decrease to 2.8% before dropping to zero in 2019.
- In October 2016, Wine Australia stated that China surpassed the USA and UK as Australia’s top wine export market. According to Wine Australia, over 1/3 of Australia’s wine exports to China were priced at least AU$7.50 per liter [~US5.70].
- From January to March 2016, China imported US$160 million worth of Australian bottled wine, a 60% increase vis-à-vis 2015. Imports benefited from a cut in Chinese import tariffs (14% to 8.4%).
- In December 2015, China-Australia Free Trade Agreement (ChAFTA) came into force.
- In June 2015, China and Australia signed a free trade agreement.
- From 2010 to 2015, red wine’s market share in China dropped 4.9% in favor of white wine and sparkling wine. However, red wine remains the most popular type of wine consumed in China with a 75% market share.
- From 2013 to 2014, Chinese wine consumption increased 5.6% to 1.94 billion bottles.
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