Claws out in opposition to Australian wine in China

China nonetheless has its claws out in terms of Australian wine even though there’s an apparent marketplace for Australian pink wine in China, says wine columnist RICHARD CALVER.

There was a younger girl of Niger
Who smiled as she rode on a tiger;
They returned from the journey
With the woman inside,
And the smile on the face of the tiger.

IN this yr of the Tiger, China nonetheless has its claws out in terms of Australian wine.

That Tiger Stance (which is an actual factor in taekwondo, additionally referred to as the Cat Stance or beom seogi) is even though there’s an apparent marketplace for Australian pink wine in China.  

That is epitomised within the early September report by “Vin Pleasure Information” that Chinese language customs authorities in Gongbei, Guangdong seized RMB 35 million (about $A7.5 million) value of smuggled Penfolds wines that have been “funnelled” from tax-free Macau to mainland China.  

The report reveals that demand for high-end wines continues to be current; it says that “photographs launched by Gongbei authorities confirmed bottles of Penfolds Bin 389, RWT Bin 789 and Bin 407, which sells for RMB 1119 ($236), RMB 1855 ($390) and RMB 1448 ($313) respectively.”  These are glorious costs. 

Evaluate the 389 “child Grange” value right here at Dan Murphy’s the place a member can get it for simply over $85 a bottle (the 2019 classic). 

These costs are much more starkly good when you think about the premise on which China imposed round 200 per cent tariffs (extra exactly, anti-dumping safety deposits) on the import of Australian wine.  

The deposit tariffs on wine to mainland China are in place for 5 years (from March 26, 2021). It’s alleged that Australia dumped low cost wine.

In July, Wine Australia reported that whole Australian wine exports declined by 10 per cent in quantity to 625 million litres and 19 per cent in worth to $2.08 billion within the yr ended June 30. Don’t you’re keen on bureaucrat converse?  

The media launch telling us these stats says: “The decline in quantity and worth was not sudden, because it was largely the results of the continued impression of the numerous discount in exports to mainland China.”

Wine Australia didn’t provide particular commentary on mainland China within the June Export Report media launch, however they equipped the figures to me by e-mail. They spell catastrophe in paint-by-numbers. The exports for the yr to the tip of June 2022 have been six million litres of wine valued at $24.6 million FOB; this was a decline of 88.5 per cent in quantity and a decline of 95.9 per cent in worth in comparison with the identical interval final yr. 

The dispute about so-called dumped Australian wine is being arbitrated on the World Commerce Group, a course of that’s set to take years. Anti-dumping and anti-subsidy duties are tariffs that governments impose on imports that they determine are beneath honest market worth, often at costs decrease than the exporting nations’ home markets. From the instance of the smuggled wine, I simply instructed you about what looks like a pipedream. 

On this context Rachel Triggs, a Wine Australia basic supervisor mentioned: “The dispute settlement proceedings on the World Commerce Group proceed to comply with the method. The proceedings are anticipated to take a couple of years to conclude. It’s one thing that our sector is following and we’re conserving exporters updated as this progresses. 

Wine Australia, and the height consultant organisation for the Australian wine sector Australian Grape & Wine, are working in shut collaboration with the Australian authorities to observe and help the sector’s pursuits throughout this time.”

In the meantime Wine Australia has closed its Shanghai workplace, a choice that, once more quoting Ms Triggs, “was based mostly on the present surroundings and market alternative”. 

Query: What’s the one animal that may go into after which out of a tiger’s den?  Reply: A tiger.