South African wine industry organisations South Africa Wine and Wines of South Africa (WoSA) have welcomed the zero-tariff regime on South African wine exports to China, which is expected to come into effect from May 1.

Under the new tariff rate arrangement, qualifying South African wine exports that meet rules of origin and customs requirements will benefit from 0% tariffs for a two-year period.

This provides South Africa and the other 19 non-least developed African countries with a two-year window to conclude trade negotiations under an early harvest agreement or trade module before the zero-tariff offer expires on May 1, 2028, ensuring compliance with World Trade Organisation regulations.

While clarity on the post-2028 arrangements remains limited, the current window presents a vital opportunity to re-establish and strengthen South Africa’s position in the market, the organisations say.

The development follows sustained industry engagement and advocacy efforts to improve market access conditions for South African wine in one of the world’s most strategically important but highly competitive markets.

“This is a significant step for the South African wine industry and reflects ongoing engagement to address structural barriers to trade,” says South Africa Wine stakeholder and market access manager Christo Conradie.

“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,” he says.

The removal of tariffs will materially improve the price competitiveness of South African wines, placing the country alongside preferential trade partners such as Chile, New Zealand and, more recently, Australia.

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

The industry anticipates improved value positioning, increased trade interest and a potential recovery in export volumes over the short term.

Over the longer term, the opportunity extends beyond volume growth to premium-status brand positioning and deeper strategic partnerships with Chinese distributors and e-commerce platforms.

However, China’s wine market has contracted significantly in recent years and is now about one-third the size it was five years ago.

Competition remains intense, with France maintaining a dominant premium position, Chile and New Zealand benefiting from longstanding tariff-free access and Australia re-entering the market following the removal of tariffs on its exports of wine.

South Africa currently holds a relatively small share of the market, accounting for less than 1% of total export volume and declined from a top ten export destination to seventeenth place in recent years.

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

“While the market remains competitive and dynamic, we see strong long-term potential to build deeper relationships with Chinese consumers and trade partners, and to grow the presence of South African wine in a meaningful and sustainable way.”

Unlocking the full value of this opportunity will require sustained investment in market development, brand building and trade relationships.

South Africa’s competitive advantage lies in the intersection of 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.

Challenges remain, including complex logistics and route-to-market structures, regulatory compliance requirements, and relatively low brand awareness among Chinese consumers compared to established Old World producers, he adds.

“The industry must 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 to translate this opportunity into sustainable growth.”

The zero-tariff window provides a timely platform for the South African wine industry to rebuild its presence in China, supported by ongoing promotional programmes, trade engagement and consumer-facing initiatives.

The aim is to build a sustainable, long-term position for South African wine in China through partnership, consistency and investment, Thompson says.