China is lifting anti-dumping and anti-subsidy tariffs on Australian wine on Friday, according to Chinese commerce authorities, and the move puts an end to three years of punitive levies while offering long-awaited relief to Australian wine producers.
The tariffs, of up to 218.4 per cent, were formally imposed in March 2021 and were among a host of trade barriers targeting Australian commodities as ties soured following Canberra’s call in April 2020 for a probe into the origin of Covid-19.
But ties have improved significantly since last year, leading China to steadily lift trade hurdles facing Australian goods, including barley and coal.
“Given that the situation in China’s wine market has changed, the anti-dumping and anti-subsidy tariffs imposed on wine imported from Australia are no longer necessary,” China’s Ministry of Commerce said in a statement on Thursday.
The SCMP reported two weeks ago that the wine tariff removal appeared imminent.
Previously, Australian wines imported into China had been subject to zero tariffs after the signing of a free-trade agreement in 2015, giving them a 14 per cent tariff advantage over many other wine-producing nations.
“We welcome this outcome, which comes at a critical time for the Australian wine industry,” the Australian government said in a statement.
“Since 2020, China’s duties on Australian wine effectively made it unviable for Australian producers to export bottled wine to that market. Australia’s wine exports to China were worth A$1.1 billion (US$718 million) in 2019.”
WTO faults Australian inquiry into trade dispute with China
WTO faults Australian inquiry into trade dispute with China
Beijing started imposing tariffs on Australian products in 2020, prompting Canberra to complain to the World Trade Organization (WTO). About three months after the tariffs on Australian wine were formalised in 2021, Canberra urged the WTO to arbitrate in the dispute.
Under the joint efforts of both sides, China and Australia reached a consensus on the proper settlement of disputes under the WTO framework, He Yadong, spokesman for the Chinese commerce ministry, told reporters on Thursday.
The removal of Chinese duties means Australia will discontinue its legal proceedings at the WTO, according to the Australian statement.
Australia’s top publicly listed winemaker, Treasury Wine Estates, said it welcomed the announcement and would start partnering with customers in China to expand sales and marketing, as well as brand management.
