China's FTA -- Trojan Horse or Opportunity?

China is offering Free Trade agreement (FTA) in exchange for Australian farmland, Winemakes with their eyes on China's emerging wine market, are understandably excited, but is this really a good deal?  The Gillard government threw out China's previous attempt at an FTA, a good move in my view, as the Chinese apparently showed little interest in increasing Australian access to Chinese markets. Still, things change in the politics of all countries, and perhaps this time China is willing to put more on the table? Even so, there are questions that need to be answered.  China's upper-middle class is expected to grow from 9.5% of the population to 59.4% in 2025, and this is a potentially massive market for Australian wine, but are there any pitfalls involved?

What is the current state of play?

PM Tony Abbott, is ideologically dedicated to an FTA at all costs.  Indeed, according to The Australian the current government has vowed to get an FTA with China by the end of the year. I don't think sounding desperate is a good way to start a negotiation! The reason for this desperation? "Bicycle Theory", which states that if a trade policy isn't pedalling towards an FTA it risks falling off, and that any FTA at all is better than suffering the evils of protectionism. How sound is this theory? One has only to look into the past to see what has happened after John Howard secured the USA-Australia FTA. The trade balance in America's favour almost doubled in 2004 to 2009, from US $6.4 billion to US $ 11.6 billion. One wonders what would happen if Australia repeated the same mistake with China. It seems that the current government is desperate to get China's signature on the contract, and this could be disasterous.

What are the risks to Australia in the FTA? 

Ideally, with an FTA Australian winegrowers wouldn't  have to pay the 15% duty on products exported to China, however the real risk comes from China wanting to invest heavily in Australian business and infrastructure. This means that China could potentially end up owning the mine and the farm, the railway track, and the shipping port too. All the profits would go back to China.  China already has a 10:1 trade imbalance with Australia, and it is highly likely an FTA would  seriously threaten existing Australian manufacturers. 

Wine in Regional New South Wales

Not just the Hunter Valley...

Lowe Wines, Mudgee. Image courtesy of visitnsw.com.

New South Wales has fourteen official wine regions, including the world famous Hunter Valley. The other thirteen however are less well-known -- from New England in the north, to Tumbarumba near the Victorian border.  Some such as Orange and Mudgee produce excellent wines, and while they are further away from Sydney than the Hunter, provide a worthwhile visit for those who wish to explore the New South Wales Wineries.  In fact, there are 351 cellar doors open in New South Wales, that’s a lot of road trips!

Anything BUT Chardonnay...

Organic Chambourcin from Tamburlaine Wines. Image courtesy of crackawines.com.au.

The main commercial growers promote a relatively limited range of grape varieties, such as the ones above. Hence the comment by Piggs Peake winemaker, and former chemical engineer Steve Langham, who said to me during my last visit while I tried his rare Wiggly Tail Marsanne  “ABC… Anything But Chardonnay.” Indeed he is right, chardonnay is boring. There are so many different varieties of wine available, most of which are not made commercially. In fact, there are according to the website vinodiversity.com, 150 types of wine grapes are grown in Australia. Wine grapes such as chambourcin, marsanne, zibibbo, and durif are relatively unknown to most Australians. Do go out and try these new varieties. A good place to start would be the Capercaillie Winery in the Hunter Valley, which makes a spectacular chambourcin.  No, its not available at Beer, Wine & Spirits, you have to go there!

Why New South Wales?

New South Wales vineyard. Image courtesy of organicwine.info.

Firstly, the market has not been commercialised to the extent that other states have, in that 75% of all wines made in New South Wales are made by family businesses according to nswwine.com.au, compared to only 33% of the total national production that comes from family businesses. This means more individual, crafted, wines with unique varieties and styles, not wines designed to catch the biggest chunk of the market. New South Wales also has many regions, which are ideal for growing wine, particularly cool climate wines. The Orange Region Vignerons Association notes, for example, that Orange is blessed with ideal grape growing conditions, with cool summers and a dry autumn.  

How do I get there?

Wining & Dining, Hunter Valley style. Image courtesy of  Experience NSW.

The Hunter Valley is a day trip from Sydney, and as an introduction to New South Wales wineries, it is a great way to start.  If you do not have a car, you can cycle through the vineyards, but don’t forget you can still be booked for drink driving. A better alternative would be to join Colourful Trips, which does Hunter Valley Tours for $125 for a day trip. For a longer stay, perhaps a romantic getaway, or to find more information on New South Wales’ wine regions look at visitnsw.com. 

Thanks for reading this blog. Future posts will cover the wines, winemakers, and wine industry of NSW. However, if I stumble across anything wine-related in my blogging adventures that I can't resist, I will blog that too.

Wine and Vine?

I am not a wine judge. I am not a professional wine writer either. My only credential is that I am passionate about wine. My first encounter with wine was “Blue Nun”, a sweet Riesling from Germany that claimed to match with Asian food. It was sweet, it was Western, it was exotic, it was irresistible. Now I can’t even remember what it tastes like, other than sweet.

The Old Blue Nun. Image courtesy of boozenews.com

My first visit to a  winery was in the Mornington Peninsula. It was a simple family boutique winery, where the grapes were hand-picked, and pressed in an old-fashioned wood press. The winemaker, a sturdy middle-aged man, simply dressed in shorts and t-shirt, explained to us how the climate and the ageing process had brought the bottle to maturation. He held the glass of wine up to the light with pride. “Look at that, a red, its a real garnet colour.” I looked. “See?” he continued. “No purple flashes, no tinges of brown. No sediment either. Those are things you don’t want in a wine.” He was not merely selling alcohol, this was a man with a passion, talking about a work of art in a bottle. I tasted the wine, and it was intense, dark and resonant with soil and oak. This was new to me, I had never felt so close to the earth, so far from the concrete jungles where I grew up. This was my first experience of the wine culture in Australia,  elegant and complex, and I was instantly hooked.

Later I travelled through numerous wineries in New South Wales, and found each one to be unique, both in terms of what it produced and its atmosphere. Most family-owned businesses, perhaps producing fairly limited runs, and some try to grow new grapes, and develop new styles. Each winery is influenced by the grapes, the climate, and the personality of the wine maker (the best seem to be the slightly obsessive types). I would regularly bring back wines for friends to try, “Which bottle shop did you get this from?” they ask. I replied,  “Cellar door only, you can’t buy it in a shop around here.” Indeed, most bottle shops are locked into dealerships with major commercial producers, so the only way to really taste wine with character, is to go out there, on the road and visit some wineries. No matter how long the journey, I find the trip home with my “booty”, a joy. I feel a satisfaction,  that in an age of instant gratification, I’ve had to put in time and effort to find something I want to share in good company.