Yesterday it emerged that China is to drop duty on imports of Australian wine after the two countries signed a new free trade agreement (FTA). Here is a quick breakdown of how Australian wine fares in China:  

  • China is Australia’s third-largest export market by value behind the US and the UK
  • The country accounts for 5.4% of Australian wine exports, or 11.8% in sales terms
  • Around 37m litres of Australian wine was exported to China in 2013/14, valued at AUD210m
  • In the past five years, sales of Australian wine to China have risen 17%, while volumes are up 8%
  • China is Australia’s largest export market by value for wine at a price point of more than AUD7.50 (wholesale)
  • Wine exported from Australia to China currently has a 14% tariff on bottled wine and a 20% tax on bulk wine
  • The FTA will allow Australian wines to compete with Chile and New Zealand better, as both countries already have reduced or zero tariffs in place as a result of their own FTAs

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