The surge in wine exports to the UK unable to compensate for the loss of the Chinese market

The trade dispute between Canberra and Beijing was the main factor behind a 10% drop in Australia’s total wine exports to $ 2.56 billion in fiscal year 2020 to 2021, according to the data of industry body Wine Australia shows.

The total value of exports to mainland China has fallen 33% in the past 12 months.

Australian wine producers are finding new export markets for their products. (Getty Images / iStockphoto)

Australian wine exports to China were hit with tariffs of more than 200% earlier this year.

As Chinese trade sanctions hit Australian wine exporters hard, a shortage of wine available for export has also contributed to the decline in trade.

But exports to other countries have increased dramatically. Excluding mainland China, they rose 12% in value to $ 1.96 billion.

Australian wine exports to the UK hit their highest level in a decade in 2021, climbing 21% in the past 12 months.

“There has been an increase in wine sales at the premises due to restaurant and bar closures linked to COVID-19, as well as some exporters who are sending wine to the market ahead of Brexit because they were concerned of the paperwork they could endure after Brexit, ”said Rachel Triggs, Managing Director of Business and Regulatory Affairs at Wine Australia.

Ms Triggs said several Southeast Asian markets were performing better than expected and growing in double digits, including Hong Kong, Singapore, Malaysia and Thailand.

Australian wine exports to China collapsed after Beijing imposed a high tariff. (PA)

Australian wine exports to the United States have fallen over the past year. They declined 7% in value, to $ 400 million.

Last month, the federal government confirmed that it was taking China to the World Trade Organization about the anti-dumping duties it imposed on Australian wine.

Relations between Beijing and Canberra fell apart last year after Australia called for an international investigation into the origins of the COVID-19 pandemic and introduced foreign interference legislation.

This sparked trade retaliation from China targeting Australian exports such as wine, coal, barley, timber and seafood.

The increase in wine shipments to new and existing markets could not offset the 45% drop in sales to mainland China in the fiscal year ended in June, according to the industry group’s latest export report. Wine Australia.


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