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A winemaker traveling to China on a special delegation has expressed confidence that Chinese tariffs on Australian wine will be resolved in the short or medium term, with business leaders from both countries excited about future trade.
Richard Dolan, joint managing director of Beck Hardie Wines of South Australia, met with South Australian Premier Peter Malinauskas in Beijing on Monday and said “very strong” people-to-people ties between Chinese and Australian businesses have helped in the tariff dispute. A meltdown is suggested. Was possible.
“I was in the room yesterday watching some of the other wine producers embrace a distributor they hadn’t seen for maybe two or three years,” he said.
“So those relationships are still very strong.”
Chinese tariffs introduced in 2020 as part of a diplomatic dispute crippled a range of Australian exports to the vast economy, including wine.
Australia exported $1.2 billion worth of wine products to China in 2020, but export values have fallen 99 per cent since then.
Mr Dolan said Chinese distributors want to see an end to the tariff system.
“There’s still a real desire for premium Australian products, wines, seafood, our aquaculture businesses, our grains, our meat,” Mr Dolan said.
“The Chinese economy, like ours, has probably softened a little bit, but there’s still demand there and I’m definitely getting the message from our distributors saying, ‘We can’t wait until the tariff situation is resolved.’ And we again Can start doing business.
Mr Dolan expressed confidence that tariffs on alcohol would be reduced in the short and medium term, but said the exact form of the resolution would emerge from diplomatic discussions.
He said, “Let’s let the diplomats do their job and we all hope that this will certainly follow the same process as Barley, and it will be resolved relatively quickly.”
China eliminated its 80 percent tariff on Australian barley in August, giving wine producers hope that a similar move could be made for wine.
The trade mission, organized by the Department of Trade and Investment and the Australian Trade and Investment Commission, began in Beijing on Sunday and will run until Thursday.
The delegation, which includes leaders from the state’s university, education, wine, agriculture, aquaculture, tourism and business sectors, was in Jinan, the capital of Shandong province, on Tuesday.
In Beijing, Mr Malinauskas met with Chinese government representatives, including Guo Tingting, Vice Minister of the Ministry of Commerce, to explore opportunities in trade and investment.
On Sunday, Mr Malinauskas and Flinders University vice-chancellor Colin Stirling met with Beijing-based Capital Normal University.
“At every meeting we have, people are acutely aware that the remission of punitive charges is important to the people of South Australia,” Mr Malinauskas said.
“Traveling with CEOs of listed companies and industry associations means a full-court press to demonstrate how determined we are.
“I was able to convey some real-life stories of the impact of tariffs on family businesses.
“We have seen a big step in the right direction with the easing of tariffs on barley, which means Chinese beer producers now have access to high quality South Australian grains.
“We want the same for wine and seafood.”
Prime Minister Anthony Albanese is expected to visit China later in the year to push for further easing of China’s trade sanctions against Australia.
