China lifts punitive tariffs on Australian wine
China said yesterday it would lift punitive tariffs on Australian wine, as trade ties improve between the two countries after years of tension, with Canberra soon afterwards announcing it would drop its case against Beijing at the World Trade Organisation.
Duties were imposed on key Australian exports such as wine, barley and beef in 2020 after Canberra legislated against overseas influence, barred Huawei from 5G contracts and called for a probe into the origins of the Covid-19 pandemic.
But trade restrictions have tapered since Australia’s centre-left government won election in 2022 and adopted a less confrontational approach.
“In view of changes in the market situation of the relevant wines in China, it is no longer necessary to impose anti-dumping duties and anti-subsidy duties on imports of the relevant wines originating in Australia,” the Chinese Commerce Ministry said in a statement, adding that the tariffs would be lifted today.
Tariffs and barriers have already been removed for commodities including Australian coal, timber and barley.
“Based on the proposal from the Ministry of Commerce, the Customs Tariff Commission of the State Council has decided to terminate the imposition of anti-dumping duties on imported wine originating in Australia starting March 29, 2024; after the cessation of anti-dumping duties, no anti-subsidy duties will be levied,” the ministry said in its statement.
China and Australian foreign ministers this month met in a sign tensions between the countries were improving.
“The re-entry of Australian bottled wine into the Chinese market will benefit both Australian producers and Chinese consumers,” Australian Prime Minister Anthony Albanese, Foreign Minister Penny Wong and Trade Minister Don Farrell said in a joint statement yesterday.
“The removal of duties means that Australia will discontinue its legal proceedings at the World Trade Organisation.”
The statement added that Canberra would continue to lobby for the remaining trade restrictions to be lifted, which includes rock lobster and beef from some abattoirs.