China’s government has formally scrapped hefty tariffs on Australian wine, potentially providing relief to an industry grappling with low prices and oversupply worldwide.
China’s Tariffs on Australian Wine Removed and Impact
Five months ago, Beijing committed to reassessing tariffs as it slowly dismantles trade barriers imposed on roughly $20 billion worth of Australian exports in 2020 and 2021.
Earlier this month, China’s Commerce Ministry released a preliminary decision indicating that tariffs of up to 220 percent on Australian wine were likely to be removed.
A few days ago, the Commerce Ministry in Beijing declared that it is no longer required to levy anti-dumping duties and countervailing duties on imports of pertinent wines originating from Australia.
Australian wine exports to China reached a pinnacle of $1.1 billion in 2019-20 but plummeted to a mere fraction of that figure following the imposition of tariffs.
Nevertheless, China’s wine consumption has experienced a significant decline in recent years, and experts caution that exports are unlikely to rebound anywhere close to the peak levels even after the tariffs are lifted.
The decision signifies that China has nearly eliminated all formal and informal trade sanctions imposed on Australia since 2020, although hurdles persist for the $700 million rock lobster trade, and various Australian meatworks remain barred from the market.
News source: New York Times and Reuters
