Tony Zappia (Makin, Australian Labor Party) Share this | Link to this | Hansard source

The interim decision by China that the tariffs on Australian wine are no longer necessary provides a ray of hope to Australian wine growers, who since 2020 have been struggling to sell their produce. With the imposition of the higher tariffs by China in 2020, after a breakdown in diplomatic relations with China under the last coalition government, Australian wine exports fell from almost $1.2 billion in 2019 to just $8 million in 2022. For South Australian growers and winemakers, who account for over 50 per cent of Australian wine production, the collapse of the China market was devastating, with last year's South Australian wine exports to China plummeting to just $4.9 million. After three years of low prices or no sales at all, many South Australian growers are struggling to survive and may even be facing bankruptcy.

Finding sufficient new markets to offset wine sales to China has not been possible, which is why rebuilding trade relations with China has been a priority for the foreign minister, Senator Penny Wong, and the trade minister, Senator Don Farrell. China's interim decision will not undo the hardship caused to growers over the past three years, but, if the lifting of the tariffs becomes permanent when the final decision is made in the coming fortnight, it will provide much-needed hope for the Australian wine industry.