Jake’s Take: Australia-China Wine Deal Uncorked

Exciting news over the weekend with Australia and China reaching a deal over tariffs on Australian wine exports.

As I wrote last week, Chinese demand for Australian goods has been surging in recent years, despite frosty relations between Canberra and Beijing.

Consumer goods have been largely unaffected by Chinese market access restrictions, which mostly targeted commodities. Sales of Australian goods in sectors like supplements, apparel, F&B, and cosmetics sectors have been strong, as Chinese consumers view Australian brands as high-quality, safe, and trendy.

However, Australian wine was one of the sectors most affected by tariffs.

The deal reached on Sunday will see China perform an expedited review of its wine tariffs. That should clear the way for Australian wineries to resume normal sales into China, a trade that was worth over $1 billion in 2020.

As part of the deal, Prime Minister Anthony Albanese announced that he would be visiting Beijing and Shanghai in early November, the first state visit from Australian leader to China since 2016.

This deal marks the latest step in the warming of relations. It’s great news for wineries, Chinese consumers, and also for brands—commercial opportunities should open as the two countries foster a more stable and productive relationship.