Aussie wine exporters expect to benefit as tariffs to China shrink

[ahojunk]

Aussie wine exporters expect to benefit as tariffs to China shrink
(Xinhua) 13:16, January 06, 2017

Australian winemakers and exporters are hoping for a boost in profits from this week, as tariffs to China are further reduced as a result of the China-Australia Free Trade Agreement (ChAFTA).

China is the nation's largest export market for wine, with the export side of the industry now worth almost 375 million U.S. dollars annually, however, with the further tariff reductions, China's middle class will be able to access more wines at a cheaper price, something exporters hope will contribute to a bigger bottom line.

Since Chinese wine connoisseurs first developed a taste for premium Australian wine, growth in the wine export business has steadied, but with the tariffs falling to just 5.6 percent from this week, exporter Kandy Xu expects the growth rate to jump yet again.

"In the beginning we exported about two containers per year, but now from last year we export 15 containers," she told the Australian Broadcasting Corporation (ABC) on Friday.

Before ChAFTA, Australian wine was subject to a 14 percent tariff before it hit Chinese shelves, however the Winemakers' Federation's Tony Battaglene said as the tariff rate continues to reduce before hitting zero by 2019, Australian winemakers and exporters can get a real leg up over the competition.

"China's now our biggest market, so this is a great chance to increase our profits," Battaglene told the ABC.

"We've got around 24 percent, 25 percent of their market ahead of France. We're now beating the old world at their game so that's a really good outcome for us."


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Good that Australia is selling more wine in China than France.
Feel good when we beat the old empire.
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[Orakzai]

Straya's economy is hugely depended on Chinese market.

 

[ahojunk]

Straya's economy is hugely depended on Chinese market.

Yes, that's very true.

This is for the year 2014, not much change for Australia in 2015 or 2016.
About a third of our exports goes to China.
A big chunk of our exports is iron ore.
When China sneezes, we will catch a cold.

Australia is the number two destination for China's FDI.
Whether we like it or not, Australia's future is closely tied to China, not the US.

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[Orakzai]

Yes, that's very true.

View attachment 366409

This is for the year 2014, not much change for Australia in 2015 or 2016.
About a third of our exports goes to China.
A big chunk of our exports is iron ore.
When China sneezes, we will catch a cold.


View attachment 366411

Australia is the number two destination for China's FDI.
Whether we like it or not, Australia's future is closely tied to China, not the US.

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i am afraid too much of political favouritism towards Americans against China is not a good thing for Australia which there is.