ONE Wagga winemaker who began exporting to China this year is excited by the potential of the new Free Trade Agreement with the world's most populous nation.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Gerry McCormick of Cottontail Wines spent a decade carefully researching the Chinese market ahead of starting exports of his product in February.
With tariffs - currently set as high as 30 per cent - to be phased out over the next five years, Mr McCormick said he and other Australian winemakers would finally be able to compete on price in the Chinese market.
"We've got people asking, 'what can you do for a $1.50 bottle of wine?'" he said.
"You just can't compete, especially with the European markets."
Wine exports from Australia to China last year totalled $217 million.
Unable to compete with exporters from other countries with more favourable tariff conditions, Mr McCormick has focused on producing premium quality wines to ensure his brand stands out in one of the world's most crowded marketplaces.
Being able to potentially cut prices by 30 per cent, once the tariff reduction is fully put in place, can only help to further broaden Cottontail Wines' foothold in the market, while also providing significant opportunities for other Riverina winegrowers.
"This opportunity for free trade should really open a few doors," he said.
"We've been lucky enough to have received a number of awards there for our wines."
The agreement has been hailed as a big win for the region by member for Riverina Michael McCormack.
He acknowledged the free trade agreement may run contrary to the Nationals' protectionist roots, but ultimately it will prove a boon for Riverina producers.
"You have to open up your trade markets for us to be able to grow," he said.
"The days of wanting to export all of our goods but not having anything come back in return, rightly or wrongly, are a thing of the past."
In addition to winegrowers, beef, grain, pork, poultry, citrus and wool growers, along with Charles Sturt University - who will now have their courses recognised by Chinese institutions and employers - are among the Riverina's big winners from the agreement.
As part of the agreement, foreign investment rules for farmland and agribusiness have been tightened, with the takeover threshold of the value before the Foreign Investment Review Board takeover triggers take effect lowered.