ORANGE winemakers who export to China will be given a more competitive edge if tariffs are phased out as a result of a free trade agreement.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
The agreement, which is close to being signed after nine years of negotiations, could result in a phasing out of Australian wine export taxes making the process easier and more cost effective for Orange red wine producers.
Orange Region Vignerons Association president David Crawley said although only about half a dozen Orange winemakers exported to China, the agreement had the potential to make trade easier and could open the doors to others considering it.
“There’s probably about 40 that could do it,” he said.
NSW Wine Industry Association president and Swinging Bridge owner Tom Ward and Printhie Wines owner Ed Swift also welcomed the potential the agreement could have.
Mr Swift has been exporting to China since 2012 and said the existing tariff was complicated with varying costs according to season and docking locations.
“My understanding is the tariff rates will be the best ones they have, its having better conditions, I hope it will just facilitate better business,” he said.
Mr Ward said while he welcomed a change to the tariff, he would remain committed to the domestic market in the short term but may revisit his business plan in three to four years.
“Orange is certainly going to be benefiting out of this, we’ve just got to remain focused on quality not quantity,” he said.
Among the other Orange wine producers exporting to China is Ben Crossing of Angullong Vineyard, who started exporting to China this year and said Orange could produce the red wines the Chinese loved.
Tamburlaine Organic Wines, which has a vineyard at Borenore, has also been exporting to China for 10 years.
Managing director Mark Davidson said the Chinese had become more sophisticated wine drinkers since the days of mixing red wine with coke.
“There’s almost a new generation of wine drinkers coming through and they are wanting to know more about wine,” Mr Davidson said.
Although French wine has been popular for decades, he said Chile also had a corner on the value for money market due to its own free trade agreement.
tanya.marschke@fairfaxmedia.com.au
