Trade with China

Mr RAMSEY (Grey—Government Whip) (16:41): The announcement by China that it will put 100 to 200 per cent tariffs on Australian wine comes as a fairly cruel blow. South Australia will be badly hit by this, given that we are the biggest wine-producing state in Australia and the home of many of the premium brands which have been finding their way to China on the back of a free trade agreement. The fact that they have said that Australians are dumping wine there is beyond ludicrous, quite frankly. We can’t produce wine all that cheaply in Australia. We don’t have that kind of low-cost economy: In fact, the product that has been finding its way into China in recent times has been the higher end of the market. There are no cheap giveaways there. There are no great subsidies for agriculture in Australia. Given their actions in other areas, it appears clear now that there is more to this than meets the eye in the terms of trade. I have been very careful not to try to stir up any kind of antagonism. We take one thing at a time and we deal with the issues individually. But there is certainly a large back bank, if you like, of actions they are taking across time, coal, barley and now wine, which would indicate that there are other drivers in this particular outcome. It’s deeply regrettable.