CANBERRALONDON, June 24 Reuters Hit with Chinese tariffs, Australia39;s wine industry struggled to offset the impact of falling exports despite scrambling to build new markets, source grapes from elsewhere and seek government help, industry executives said.
That indicates what may be to come for food and drinkproducing sectors caught up in an EUChina trade dispute that threatens to complicate their access to the critical Chinese market.
Though the EU39;s winemakers are not part of the current spat, its pork and brandy sectors fear they could be hit with retaliatory measures from Beijing after the bloc imposed tariffs of up to 38 on Chinesemade electric vehicles.
Australian sectors faced similar curbs after the country39;s calls for an inquiry into the origins of COVID19 led to Chinese import restrictions on a range of its products. The first tariffs on wine were introduced in November 2020.
While most industries were able to find alternative albeit often less profitable markets, the Australian wine industry lost market share, key relationships and profits after China imposed tariffs of up to 218.
Famous for its cheap reds and pricier bottles from regions like the Clare and Barossa valleys, Australia was the world39;s fifthlargest wine exporter and China its most valuable export market. The move all but wiped out exports worth 800 million a year.
While some larger players with production outside Australia, such as Treasury Wine Estates, fared better, Australia39;s…