China’s duty clear on Australian wine will hurt Bordeaux sales, producers say

French Bordeaux wine exporters, who account for 9% of China’s total wine and spirits imports, anticipate a sharp decline in their exports following China’s decision on Thursday to remove import tariffs on Australian wine.

France, which is China’s leading wine supplier and Bordeaux’s largest export market by volume, is expected to feel the impact of this trade change swiftly.

Sara Briot-Lesage, a spokeswoman for the CIVB, noted that trade agreements often have an almost immediate effect on exports. She cited the France-Japan free trade agreement, which, since its implementation in early 2019, led to a rapid increase in trade between the two nations. “A similar effect is likely to occur between Australia and China,” she added. “Those without free trade agreements will face disadvantages.”

China’s commerce ministry announced that it will lift anti-dumping and anti-subsidy tariffs on Australian wine starting March 29, ending three years of punitive measures and providing much-needed relief to Australian producers. Meanwhile, French wines will still face import duties in China, currently costing around 7.7 euros per bottle.