NovaNews

SA wine industry welcomes China zero-tariff access

South African wine producers are set to benefit from the removal of all import tariffs on exports to China from tomorrow.
The South African wine industry is set to benefit from the removal of all import tariffs on exports to China.

South African wine producers are set to benefit from the removal of all import tariffs on exports to China from tomorrow, in what industry leaders have described as a crucial opportunity to rebuild market presence after years of declining sales.

The zero-tariff regime takes effect on 1 May 2026 for an initial two-year period, replacing the previous 14% most-favoured-nation tariff that placed South African wines at a competitive disadvantage in one of the world’s largest wine markets.

“Tariffs have long placed South African producers at a disadvantage relative to key competitors. Their removal creates a more level playing field and opens the door for renewed growth in China,” said Christo Conradie, stakeholder management and market access manager at South Africa Wine.

The development follows sustained industry engagement to improve market access conditions. Under the arrangement, qualifying South African wine exports that meet rules of origin and customs requirements will benefit from zero tariffs until 1 May 2028, when the offer expires unless trade negotiations are concluded under an early harvest agreement or trade module.

South Africa and 19 other non-least-developed African countries have the two-year window to finalise trade arrangements that ensure World Trade Organisation compliance. While clarity on post-2028 arrangements remains limited, industry officials expect negotiations to progress smoothly.

The tariff removal will place South Africa alongside preferential trade partners including Chile, New Zealand and Australia, all of which already enjoy duty-free access to the Chinese market under existing agreements.

South African wine producers are set to benefit from the removal of all import tariffs on exports to China.
Tariffs have long placed South African producers at a disadvantage relative to key competitors. Their removal will create a more level playing field and opens the door for renewed growth in China.

“This is effectively a market access reset for South Africa,” Conradie said. “It allows producers to re-engage with importers, regain listings and rebuild momentum from a low base.”

The timing is critical for an industry that has seen its position in China erode significantly. South Africa currently holds less than 1% of the Chinese wine import market and has dropped from a top 10 export destination to 17th place in recent years. In 2025, South African wine exports to China totalled $7,07 million, down 47,61% year-on-year.

The broader Chinese wine market has also contracted sharply, now roughly one-third its size from five years ago, creating an intensely competitive environment. France maintains a dominant premium position, while Chile and New Zealand have benefited from longstanding tariff-free access.

Despite these challenges, Wines of South Africa chief executive Siobhan Thompson sees strong potential for growth.

“Zero tariffs represent a crucial opportunity for South African wine in China,” Thompson said. “It allows us to compete on a more level playing field and showcase the quality, diversity and value that define our industry.”

Thompson noted that South Africa’s competitive advantage lies in quality, value and authenticity, with growing traction in white wine categories such as Chenin Blanc, as well as opportunities to expand premium offerings including Cap Classique and Pinotage.

ALSO READ: EU injects €15 million to transform South African wine industry

However, she cautioned that tariff removal alone will not guarantee success. The industry faces complex logistics and route-to-market structures, regulatory compliance requirements and relatively low brand awareness among Chinese consumers compared to established European producers.

“Tariffs are only one part of the equation,” Thompson said. “To translate this opportunity into sustainable growth, the industry is well positioned to work collaboratively with importers, distributors and partners on the ground, supported by our regional office in the market, a clear growth strategy and continued investment in brand visibility and consumer education.”

Imported wines will still be subject to China’s 10% consumption tax and 13% value-added tax at customs clearance, even after tariff removal.

ALSO READ: Trump’s Trade Blow: 35 000 jobs on the line as US slaps heavy tariffs on exports

In the short term, the industry anticipates improved value positioning, increased trade interest and a potential recovery in export volumes. Over the longer term, the opportunity extends to premiumisation, stronger brand positioning and deeper strategic partnerships with Chinese distributors and e-commerce platforms.

The zero-tariff policy forms part of the China-Africa Economic Partnership Agreement, which China announced at a Forum on China-Africa Cooperation ministerial meeting in June 2025. President Xi Jinping committed to providing duty-free access across 100% of tariff lines for qualifying African nations.

ALSO READ: South African wine industry eyes promising 2026 harvest after favorable winter weather conditions

Chinese authorities describe the initiative as making China “the first major economy to provide unilateral, full-coverage zero-tariff treatment to all African countries with diplomatic ties.”

Further practical arrangements, including documentation requirements and certificates of origin, are still being finalised. Exporters will be informed directly once these details are confirmed.

“This is about building a sustainable, long-term position for South African wine in China through partnership, consistency and investment,” Thompson said.

ALSO READ: South African vineyards shine on World’s 50 Best list as four estates earn global recognition

You need to be Logged In to leave a comment.

Gift this article