The NSW Wine industry has voiced its concern of the tariff hikes introduced by China, saying they are “unjustified” and puts NSW wine exports at “great risk”.

The recent decision by Chinese authorities to impose unjustified import charges on Australian wines into China will make many NSW wines unaffordable in the Chinese market, according to the industry representative body.

The NSW wine industry representative says Chinese tariff hikes puts not only a large portion of the $150-180m worth of NSW wine exported to China every year at “great risk”, but will put more pressure on many family-owned and run NSW wineries and vineyards alongside the regional communities they live and work in.

“After a devastating period of a multi-year drought, fires, smoke, crop losses and shutdowns due to COVID-19, we now have a 212% charge imposed on NSW wines bound for export to China and we reject any claims or comments of no significant impacts on the NSW wine industry as a result of this China trade dispute,” said NSW Wine president Mark Bourne.

“Following this latest in a line of blows to the NSW wine industry and its 53,000 direct and indirect employees, we are desperately searching for a reprieve from a tumultuous 12 months, along with support to survive and rebound.”

NSW Wine says the repercussions from a significant loss in an export market as big as China will be felt across the whole wine industry sector.

Both domestic and international supply chains and markets will feel the effects if a substantial amount of the $1.2billion of Australian wine is no longer destined for export to China or has a home.

What has not been calculated at this stage are the potential substantial losses of Chinese tourism dollars to the NSW economy, and in particular regional NSW economies.

The organisation says that if international relationships between Australia and China do not improve, and Chinese tourists and wine consumers do not return to the Australian market in the numbers we have seen previously, there may be longer term effects even more pronounced.

Bourne added, “I am respectfully issuing an invitation to our elected NSW representatives to meet as soon as possible to experience and hear first-hand from our hard working grapegrowers, winemakers on how this latest, and previous compounding rounds of setbacks, are impacting our industry and our regional communities”.

NSW Wine executive officer Angus Barnes said, “We are still waiting for the NSW Government to agree to a Memorandum of Understanding between industry and government after more than two years of requests”.

“An effective MOU would outline the best ways to work together and how the government can support the industry to be competitive and sustainable, and now would be the perfect time for the NSW Government to stand up and support this important industry.”

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