On March 29, the Chinese government will lift anti-dumping and anti-subsidy tariffs on Australian wine.
This move will end three years of punitive levies and offering long-awaited relief to Australian wine producers.
The tariffs, of up to 218.4%, had initially been imposed in March 2021 for a period of five years along with a host of other trade barriers on Australian commodities when ties became strained after Canberra called for a probe into the origins of COVID-19.
The ties between the two countries have improved significantly since last year, leading China to gradually void trade hurdles on Australian goods ranging from barley to coal, and raising optimism that the stringent tariffs on shipments to Australia’s top wine export market would soon be abolished.
Previously, Australian wines shipped into China were subject to zero tariffs after the signing of a free trade agreement in 2015, allowing them a 14% tariff advantage over several other wine-producing nations.
In the first half of 2023, Australian wine accounted for only 0.14% of Chinese wine imports compared to 27.46% in 2020 before the duties were imposed, according to the commerce ministry statement.
Beijing began imposing tariffs on Australian products in 2020, forcing Canberra to protest to the World Trade Organisation -WTO. When the tariffs on Australian wine were levied in 2021, Canberra appealed to the WTO to arbitrate in the dispute.
The abolishing of the Chinese duties means Australia will stop its legal proceedings at the WTO, according to the Australian statement.
The removal of the tariffs is a welcome move to vine growers in Australia as millions of vines are being destroyed to rein in overproduction amid falling utilisation of wine globally.
