China raises record low prices for Australian wine as ties grow | Business and Financial Issues

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Beijing imposed tariffs on Australian wine in 2020 amid diplomatic tensions, raising duties from zero to over 200 percent.

China has said it will lift tariffs on Australian wine introduced three years ago in the latest sign of improving relations between the two countries.

Anti-subsidy and anti-dumping duties were the first was launched in 2020 along with many other trade barriers during the dispute over Australia’s support for international research into the origins of COVID-19. China was Australia’s leading market for wine, and Australian winemakers suffered a major loss in the industry, which was more than 200 percent.

The relationship has improved significantly since last year, prompting China to gradually lift trade barriers on Australian goods from barley to coal and raising hopes that punitive tariffs on wine exports will soon be lifted.

“Given the situation in China’s wine market has changed, the anti-dumping and anti-subsidy tariffs imposed on Australian wine are no longer necessary,” said China’s Ministry of Commerce in a statement on Thursday, adding that the decision will take effect. results on Friday.

Previously, Australian wines exported to China had zero duty after signing a free trade agreement in 2015, giving them a 14 per cent price advantage over wines produced in other countries.

Australian wine accounted for 27.5 percent of China’s wine exports before the project was implemented. In the first six months of last year, they calculated 0.14 percent as an estimate putting the value of the Australian economy at 20 billion Australian dollars ($13bn).

“We welcome this decision, which comes at a very difficult time for Australian industry,” the Australian government said.

“From 2020, Chinese duties on Australian wine made it difficult for Australian producers to export bottled wine to the market. Australian wine exports to China were worth $1.1 billion in 2019.”

The imposition of these tariffs led the Australian government to lodge a complaint with the World Trade Organization (WTO). The removal of China’s duties means that Australia will settle its case at the WTO, Australia said.

“We are ready to work with Australia to address our concerns through dialogue and negotiation,” said He Yadong, a spokesman for China’s Ministry of Commerce.

Australia’s top wine producer, Treasury Wine Estates, also welcomed the announcement and said it would begin partnering with Chinese customers to increase sales and marketing and brand management.

“Today’s announcement is fantastic not only for Treasury Wine Estates, but also for the Australian wine industry and for Chinese wine buyers,” CEO Tim Ford said in a statement.

“This is a short-term growth opportunity that we will pursue in a deliberate and sustainable manner, as we look to expand our footprint in China.”

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