China: The government of China has announced it will scrap significant taxes on Australian wine as ties between the two countries improve. Amid a string of economic blows to Australian exports in 2020, Beijing imposed tariffs of over 200 percent on Australian coal, barley, timber, and lobsters in a wider political fall-out.
Since the new government was elected in Canberra in 2022, China-Australia linkages enhanced. Anthony Albanese, the Australian Prime Minister, welcomed the Chinese Commerce Ministry’s announcement, noting that his governance was also handled to relieve other trade obstacles.
Australian barley, another key product targeted by China, was exempted from tariffs last August. The Prime Minister said in a statement that, “This outcome affirms the calm and consistent approach taken by the Albanese Labor Government and follows the success of the similar approach taken to remove duties on Australian barley.”
PM Albanese cited that his government is still in the procedure of lobbying China to eradicate remaining taxes on commodities such as beef and lobster. Previously, China was the most profitable market for Australian winemakers, contributing to almost one-third of all bottles exported overseas.
Australian wine agents commented that the industry incurred a loss of A$2.1 billion ($1.37 billion, £ 1.08 billion) in the year following the closure of China’s market. Despite trying to sell their products in other markets, winemakers found it challenging to match the sales volume they achieved in China and kept struggling with surplus wine in recent years.
The Commerce Ministry of China stated that it was lifting tariffs on bottled wine. This decision was reportedly taken due to ‘changes in the market situation of the relevant wines in China.’ Previously, Beijing rejected allegations of monetary pressure and justified its duties on Australian wine as anti-dumping and anti-subsidy measures.
Australia filed a complaint with the World Trade Organization about China imposing tariffs on Australian exports. However, the suit was withdrawn last year as the links between the two nations improved.
In February, the Australian government predicted that the taxes would be removed after diplomatic talks. The Chinese commerce ministry also revealed in an interim conclusion issued earlier this month that the tariffs would most likely be scrapped.
Last week, Wang Yi, China’s Foreign Minister, visited Canberra to hold conferences with Australian leaders. China remains Australia’s top trade associate and export destination for several commodities.
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