China drops tariffs on Australian wine

China has dropped its tariffs on Australian wine after years of sanctions that crippled the billion-dollar export industry.

The Chinese Ministry of Commerce said on Thursday afternoon it “would terminate the collection of anti-dumping duties” on imported Australian wines from March 29.

Australian wines in Beijing.

Prime Minister Anthony Albanese said the Australian government welcomed the decision and confirmed it would drop its case against China at the World Trade Organisation.

“The re-entry of Australian bottled wine into the Chinese market will benefit both Australian producers and Chinese consumers,” he said.

The tariffs of between 107 and 212 per cent were implemented in 2020 on some of Australia’s best-known wine brands. They followed multiple diplomatic disputes between Canberra and Beijing over human rights, national security and COVID-19.

The ministry accused Australian winemakers including Treasury Wine Estates, which owns the Penfolds brand, of dumping wine in the Chinese market at cheaper prices, forcing out competition from local vineyards. Those allegations were rejected by Australian businesses and the government.

The ministry said on Thursday the decision to drop the tariffs was made after reviewing the market in China.

“The Ministry of Commerce ruled that in view of changes in the situation of the relevant wine market in China, it is no longer necessary to impose anti-dumping and countervailing duties on imported relevant wines originating from Australia,” it said in a statement.

The Chinese government also banned Australian coal, lobsters, barley and half a dozen other exports totalling $20 billion during the tumultuous three-year period, leading the former Coalition government to accuse Beijing of economic coercion.

Albanese said the Australian government would continue to press for all remaining trade impediments affecting Australian exports to be removed. Tariffs on Australian barley were dropped in August.

“The Australian government’s approach is to cooperate with China where we can, disagree where we must and engage in our national interest – the outcomes on barley and wine reflect that approach,” he said.

More to come

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