The China-Australia Free Trade Agreement has reached its first anniversary, instated on December 20, 2015, and the results have shown incredible success. Under the agreement, Australian wine exporters have been able to claim preferential tariff reductions through accompanying wine consignments with a ChAFTA Certificate of Origin. The rate has decreased from 14 per cent to 8.4 per cent for most wine and will drop to a further 5.6 per cent on 1 January 2017.
The agreement has given Australian winemakers a substantial competitive edge over their European counterparts. As a result of the preferential tariff rates, China is now Australia’s most valuable wine export market, with exports to mainland China experiencing growth by over 50 per cent to just under $500 million in the last year alone.
After such a successful first year, there seems no stopping the continued growth of Australian wine in the Chinese market. Tony Battaglene, Chief Executive of the Winemakers’ Federation of Australia, said, “The demand for our premium wines in China shows no sign of abating and the next round of tariff cuts will give us a further advantage over our next biggest rivals in France.
“The Australian Governments’ continued emphasis on pursuing trade opportunities and reducing market access barriers is welcomed by the wine sector and the benefits of this will flow on to rural and regional Australia over the next decade.”
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