China lifts tariffs on Australian wine, ending three-year trade freeze | Wilnesh News

China will lift anti-dumping and countervailing duties on Australian wine from March 29, ending three years of punitive tariffs and providing long-awaited relief to Australian wine producers, the Ministry of Commerce said on Thursday.

Relations between the two countries soured after Canberra called for an investigation into the origins of COVID-19, imposing tariffs of up to 218.4% on Australian goods for the first time in March 2021 for five years, as well as a series of other trade barriers on Australian goods.

Significant improvement in relations between the two countries since last year has led China to steadily remove trade barriers on Australian goods from barley to coal and raised hopes that punitive tariffs in Australia’s biggest wine export market will soon be lifted.

The Ministry of Commerce stated in a statement that in view of changes in China’s wine market, anti-dumping and countervailing duties will no longer be imposed on imported wine originating from Australia.

Previously, after the free trade agreement was signed in 2015, Australian wines imported into China were subject to zero tariffs, enjoying a 14% tariff advantage over many other wine-producing countries.

The Ministry of Commerce stated in a statement that in the first half of 2023, Australian wine accounted for only 0.14% of China’s wine imports, compared with 27.46% before tariffs were imposed in 2020.

The Australian government said in a statement: “We welcome this outcome, which is a critical moment for the Australian wine industry.”

“Since 2020, China has imposed tariffs on Australian wine, effectively preventing Australian producers from exporting bottled wine to this market. Australian wine exports to China in 2019 were worth $1.1 billion.”

Beijing began imposing tariffs on Australian products in 2020, prompting Canberra to lodge a complaint with the World Trade Organization (WTO). When tariffs are imposed on Australian wine in 2021, Canberra urges the WTO to arbitrate the dispute.

China’s Ministry of Commerce spokesperson He Yadong told reporters on Thursday that with the joint efforts of both sides, China and Australia have reached a consensus on properly resolving disputes under the WTO framework.

Australia stated in a statement that the elimination of China’s tariffs means that Australia will cease its legal proceedings at the WTO.

Treasury Wine Estates, Australia’s top listed wine producer It said it welcomed the news and would begin working with Chinese customers to expand sales and marketing and brand management.

Chief executive Tim Ford said in a statement: “Today’s announcement is significant and positive news not only for Treasury Wine Estates, but also for the Australian wine industry and Chinese wine consumers.”

“This is a medium-term growth opportunity that we will pursue in a prudent and sustainable manner, with a focus on expanding our portfolio in China.”

The removal of tariffs will also be welcomed by Australian grape growers as millions of vines are destroyed to control overproduction amid falling global wine consumption.