Govt aid to get WA wines back into China

The state government will pitch in to rebuild Western Australia’s $18 million wine trade with China following the removal of crippling tariffs which effectively shut down the local industry’s biggest buyer.

Speaking at Xanadu Wines in Margaret River on Friday, WA Premier Roger Cook and Regional Development Minister Don Punch revealed a $500,000 rescue package to go towards marketing in China, re-engaging with retailers and distributors, hosting of trade delegations, and participating in Shanghai and Hong Kong wine exhibitions.

The funds follow China’s decision to scrap tariffs of up to 218 per cent imposed on Australian wine imports in 2021 after former Prime Minister Scott Morrison called for an inquiry into the origins of COVID-19.

Mr Cook said getting WA wine back into the Chinese market would spur diversification.

“There is a huge opportunity to re-establish WA wines as a premium product for the Chinese market,” he said.

“There is a significant growth in the domestic wine industry in China, so there's going to be competition.

“But again, we know that Western Australian wines are highly valued in the Chinese market because of their premium quality.”

Wines of WA chief executive Larry Jorgensen said changes to compliance in the intervening years meant re-establishing trade with China would be a challenge.

“It may not be what it was, but even if it is 50, 60, 70 per cent of what it was that means an extra $13 million to $15 million per year in additional export income,” he said.

“That's where the assistant package here will be very useful, because people have to take a bit of time to get their head around what needs to be done.

Prior to the introduction of tariffs 38 per cent of WA’s wine exports went to China.

Mr Punch said in the years since the tariff was introduced new markets were opened up with the US, Canada, UK, and Europe.

“The wine sector took a tremendous blow with the imposition of tariffs from China,” he said.

“I do you want to thank the wine industry, they have been tremendously resilient through very, very difficult circumstances.”

Both Mr Cook and Mr Punch nominated shiraz as their favourite Western Australian wine.