Sales of Australian wine to the United Kingdom rose nearly 30 percent last year as producers increased wine exports to Europe following severe export tariffs imposed by China.
Image from: Internet
Last November, the Chinese government imposed new tariffs of 107%-212%, allegedly to stop Australian wine producers from dumping wine in China, according to the BBC.
China claimed that Australian wine exporters had been using Australia"s state subsidies to sell wine in China at lower prices than they would in Australia. At the time, Australian Trade Minister Simon Birmingham denied that Australia's initiative amounted to a subsidy for our wine exports.
The Chinese market was the largest importer of Australian wine in the first nine months of 2020, accounting for 39% of total exports. Since the introduction of the new tariffs, China's wine imports from Australia have fallen sharply.
Meanwhile, Australian wine exports to Europe are already growing, up 22% year-on-year in 2020, with the UK leading the way with 29% growth.
But as the Chinese market has become more hostile to Australian wine, the UK has overtaken China as Australia's top-selling exporter, with total sales of 29.6 million cases in 2020.