Australian wines exported to China will double, or even triple, in price due to new import tariffs.
 
This could bolster sales of South African wines, which currently represent only 1% of Chinese imports.
 
SA exporters have been lagging due to the country's lack of exposure in supermarkets and one ecommerce platforms, one exporter says.
 
China has slapped import tariffs of between 107% and 212% on Australian wines, as part of a tense – and growing – trade war between the countries.
 
In recent months, China also banned exports from some Australian beef facilities, launched a crackdown on coal imports from that country, and imposed an 80% tariff on Australian barley.
 
China says the barley and wine tariffs are anti-dumping measures, but commentators believe it has more to do with Australia’s call for an investigation into China’s handling of the coronavirus pandemic, as well as its decision to exclude Huawei from the development of Australia’s 5G network. Diplomatic tensions between the countries have been growing in recent months.
 
This could have some profound implications for South African exporters, particularly of wine.
 
Currently, only one percent of Chinese wine imports are from South Africa, according to Wines of South Africa (WOSA) a not-for-profit industry organisation which promotes wine exports.
 
This was initially due to French exporters cementing their position in the Chinese market over the past two decades, and also because South African producers have not yet built strong relationships with Chinese wine importers, says Philip Retief, CEO of Van Loveren Vineyards, which exports some of its product to China.
 
Also, South African wines have a price disadvantage. Australia, New Zealand, and Chile have free-trade agreements in place with China, which meant that in the past, import tariffs of around 17% were waived on their wines.