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Southeast wine lovers could be the beneficiaries of a nasty trade war with China after a Queensland boutique winemaker was struck down with a whopping 212 percent of its wine exports to that country.
Rod Hill, general manager of Sirromet Wines, said the tariff would have a big impact on the price of all Australian wines going to China.
Mr Hill said he wasn’t sure how China tariffs would affect local sales of his wine this Christmas, but didn’t rule out a nice Christmas surprise with some quality boutique wines at cheaper prices.
« It won’t have any real impact on the local market – but if you get into a situation where there is an oversupply of wine in the Australian market and we can’t find a home for it in an export market, it will. « Put pressure on prices so that local consumers can actually benefit. « »
China decided last week to add tariffs that range from 107. 1 percent to 212. 1 percent, after an investigation into the claims was conducted, Australian winemakers dumped wine on the world market at cheap cellar prices.
The Australian government denied the claims, saying there was no basis or evidence for them before urging China today to delete and remove a social media post about Australian armed forces personnel.
« These new tariffs have a significant impact and for us it means we have no choice but to pass these additional costs on to our customers in China, » said Hill.
« Then it becomes a situation as to whether our wines can continue to exist on the market if the competitive conditions are uneven.
« This is nothing new. It’s just one major change that unexpectedly caused Australian wine producers to react quickly.
« It removes uncertainty about what tariffs will be when the wine dumping investigation is complete. « »
He said his China customers delayed ordering while China set tariffs which will be applied to different manufacturers at different rates depending on China’s decision to classify the supplier.
Large wine producers were burdened with tariffs of 107 percent, while the remaining Australian producers were taxed at the highest rate of 212 percent.
Before the global free trade agreement was announced in 2015, there were Chinese tariffs on wine exports, which led to a reduction to zero percent in 2019, when wine exporters only had to pay 17 percent VAT.
Federal Trade Minister Simon Birmingham announced on Sunday that he would reach out to the organization about China’s handling of delays in Australian barley and coal in Chinese ports. At this point, however, wine will not be part of an immediate complaint to world trade.
Mr Hill said Mt Cotton-based Sirromet Wines is in a strong position to break the high tariffs with only 25 percent of exported wine accounting for around 50. 000 bottles a year to bypass.
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Tariff, China, Wine
World news – AU – Wine makers hit 212% China tariff
Associated title :
– Wine manufacturer hit 212% China tariff
Ref: https://www.cqnews.com.au
