Saturday, 27 March 2021

Chinese bastardry forces Australian wine producers to pivot

The announcement that China will apply duties of up to 218.4% on most Australian wine exporters has left the wine industry needing to pivot quickly. 

Australian Grape & Wine said today that it is now focusing its attention on driving growth in developing markets. 

China’s Ministry of Commerce of Commerce (MOFCOM) yesterday released its final determinations on investigations into allegations of dumping of Australian wines in China and trade distorting subsidies (countervailing duties), applying duties on imports of all bottled, still wines from Australia.

“While it is disappointing, the industry is not surprised by today’s decision,” said Tony Battaglene, CEO of Australian Grape & Wine. 

“We continue to reject the allegations levelled against Australian Grape & Wine members and have approached both investigations as collaboratively and transparently as possible.”

Battaglene said the industry had been preparing for this outcome.  

“Our focus now is two-fold. Firstly, we’re working with industry and the Australian Government to assess options available to us within the Chinese system, and internationally," he said. 

"And secondly, we’re focusing on growing demand for Australian wine in other markets across Asia, Europe, US, and the UK.

“We have worked closely with the Australian Government throughout this process and I want to thank Ministers for the work they have done in what has been a very challenging period for everyone.”

“The Australian Government’s $72.7 million investment to help agribusinesses expand their export markets is a great first step to getting on with the job of finding new markets for Australian wine. 

"It’s going to take collaboration, hard work and commitment, but if we work together we’re confident that we can drive growth in market access and sales in a range of markets in the coming years.”

# Australian Grape and Wine Inc is the national association of grape and wine producers. 


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