Australian winemakers make bets on end to import tariffs in China
Australian winemakers are adopting proactive strategies such as increasing shipments to China’s Hong Kong Special Administrative Region (HKSAR), in anticipation of the removal of tariffs on their products in the Chinese mainland, their largest market, the Global Times learned from industry insiders and media reports.
Recent actions by Australian companies once again reflected their ongoing enthusiasm for tapping into the potential opportunities, driven by the continuous improvement of bilateral trade ties between China and Australia, as well as the positive outlook for the Chinese consumption market recovery since the beginning of 2024, experts said on Monday.
These remarks came as media reports said that Australian winemakers have shipped millions of bottles of wine to the HKSAR in a bet that China will soon lift tariffs on Australian wine and revive a trade worth hundreds of millions of dollars, Reuters reported.
In a letter to the Global Times on Monday, Treasury Wine Estates, an Australian global winemaker, said that it is “prepared and well-placed to commence re-establishing its Australian country of origin portfolio in China should the current review into tariffs on Australian wine imports see their removal,” referring to the company’s recently announced interim results.
The Chinese Ministry of Commerce began reviewing the anti-dumping and countervailing duties on Australian wine as of November 30, 2023. A five-year series of anti-dumping and countervailing tariffs on Australian wines was imposed on March 28, 2021.
A senior insider with a Chinese wine industry group told the Global Times on Monday that the review regarding tariff lifting is underway and there is no update at present. When it comes to the specific timeline for the review, the insider said that it is ultimately up to the Chinese side, not the Australian side. The insider urged the Australian side to remain patient, noting that the corresponding department in China has already taken active steps over the matter.