Lower import tariffs on Australian wine increase imports
Australian wine sales in China and in the Republic of Korea could rise significantly if existing import tariffs on Australian wine by those two nations were phased out.
Today, the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) released an analysis of import tariffs in the wine markets of China and the Republic of Korea.
According to the ABARES, the removal of the import tariffs on Australian wine by China and by the Republic of Korea would lower the retail price of wine in those markets, making Australian wine more competitive.
ABARES acting Executive Director, Kim Ritman, said that over the past decade, Australian wine exports to China and the Republic of Korea have grown markedly, but there has been increased competition from other imported wines, especially from Chile and New Zealand.
“The strong growth in wine exports to China in recent years from both Chile and New Zealand reflect the market advantage granted by lower import tariffs on their wines,” Dr Ritman said.
It is estimated that the removal of China’s import tariff on Australian wine could lead to a fall in the Chinese retail price for Australian wine by about 12% for bottled wine and 17% for bulk wine. For the Republic of Korea, the fall in the retail price would be closer to 13% for both bottled and bulk wine.
“The results of this analysis reaffirm the potential gains to the Australian wine industry of more liberalised trade,” Dr Ritman said.
The ABARES report, ‘Economic analysis of import tariffs in the wine markets of China and the Republic of Korea’, commissioned by the Grape and Wine Research and Development Corporation, is available in full here.