The recovery of Australian wine exports following China’s removal of tariffs faces fresh challenges amid declining global consumption, according to Wine Australia, the country’s wine regulatory body. While the lifting of trade restrictions has triggered a sharp rise in shipments to China, long-term demand remains uncertain once initial restocking is completed.
Australia’s wine industry, one of the world’s largest exporters, suffered a major blow in 2020 when China—its primary market—imposed tariffs on bottled wine, effectively shutting down imports. This led to oversupply issues and falling grape prices, forcing many producers to remove millions of vines. The situation worsened with major companies, including Treasury Wines and Pernod Ricard, announcing asset sales in Australia last year. However, diplomatic improvements between Beijing and Canberra led to the removal of tariffs on March 29, 2023, reopening trade.
From then until the end of 2023, Australia exported 83 million liters of wine to China, valued at 902 million Australian dollars ($562 million), reaching shipment levels similar to pre-tariff volumes. Despite this resurgence, Wine Australia’s research manager, Peter Bailey, cautioned that sustained growth is uncertain, as China’s wine consumption has not returned to pre-restriction levels. He noted that more time is needed to assess stable export volumes once the initial restocking phase concludes.
Meanwhile, exports to other markets continued to decline, with the total value of shipments falling 13% to 1.64 billion Australian dollars and volume dropping 7% to 565 million liters in 2024. According to the International Organisation of Vine and Wine (OIV), global wine consumption in 2023 hit its lowest level since 1996, with China experiencing a steeper decline than other countries.
POLICY & LAW | Tesla Fights EU Tariffs on China-Made EVs in High-Stakes Legal Battle
