Free trade agreement pays off for Australian wine exporters
Wine exports to China have increased by over 50 per cent since the start of the China-Australia Free Trade Agreement (ChAFTA) one year ago says the Winemakers’ Federation of Australia.
According to the Winemaker’s Federation, wine exports from Australia to China increased to just under AUD $500 million in value for 2016. A decade ago, Australian wine exports to China were valued at AUD $27 million.
The ChADTA free trade agreement was implemented one year ago on the 20 December 2015 and once it is fully in effect 95 per cent of Australian exports to China will be tariff free.
Before the agreement, Australian wine exporters paid a 14 per cent tariff. Now wine exporters pay 8.4 per cent with the rate dropping further down to 5.6 per cent on 1 January 2017.
Tony Battaglene, Chief Executive Officer of the Winemakers’ Federation of Australia says the tariff reductions are welcome with Chinese demand for wine continuing to grow.
“The demand for our premium wines in China shows no sign of abating and the next round of tariff cuts will give us a further advantage over our next biggest rivals in France’ said Battaglene.
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