World News

China deviates from Australia’s wine ban

The Chinese government has lifted high tariffs on Australian wine imports. The latest sign is that trade relations have stabilized.

In a statement, the Australian government said it had been informed that China would lift its tariffs on Australian bottled wine from Friday.

“We welcome this outcome, which comes at a critical time for the Australian wine industry,” the statement said.

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

“This result confirms the calm and consistent approach of the Albanian Labor government and follows the success of the similar approach to abolishing tariffs on Australian barley.”

Since 2020, China’s tariffs on Australian wine have effectively made it unviable for Australian producers to export bottled wine to this market. Australia’s wine exports to China were $1.1 billion in 2019.

“We acknowledge and thank Australia’s winegrowers and wine producers for their fortitude and support during this difficult time,” the statement continued.

“Abolition of tariffs means Australia will end its litigation at the World Trade Organization.

“The Australian Government’s approach is to work with China where we can, disagree where we must and stand up for our national interests – the findings on barley and wine reflect this approach.

“We will continue to push for any remaining trade barriers affecting Australian exports to be removed, which is in the interests of both Australia and China.”

Beijing imposed high tariffs on bottled wine imports in 2020, when its diplomatic relations with Canberra were at their worst, crippling Australia’s wine industry and driving the market value to about $10 million from a high of $1.1 billion decreased last year.

China agreed to a review of tariffs in October after the former coalition government first referred the taxes to the World Trade Organization in late 2021, which Labor said would proceed if the review did not result in the tariffs being lifted.

South Australian Business Chamber chief executive Andrew Kay said he was advising local businesses to proceed with caution

Manage expectations.

“This news will certainly lift spirits in a sector that is going through difficult times, just as it wearily harvests the last grapes of the 2024 vintage,” he said.

“While no one can guarantee how the Chinese market will react, it is unlikely that we will return to the halcyon days, at least in the short term.

“It is important that we learn from history and that South Australian wineries view this news and their response from a strategic rather than an opportunistic perspective.”

The decision follows China’s decision to lift high tariffs on Australian barley late last year, as well as the resumption of coal and cotton exports.

The Albanian government will continue to press China to remove trade barriers for lobsters and meat from some slaughterhouses.

Read related topics:China

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button