China has officially lifted the heavy tariffs imposed on Australian wine, providing a potential lifeline to an industry facing challenges due to low prices and global oversupply. The decision follows a review initiated five months ago as China gradually dismantles the trade barriers it imposed on Australian exports in 2020 and 2021.
The Commerce Ministry in Beijing has announced that it is no longer necessary to impose anti-dumping and countervailing duties on Australian wine imports. China had previously claimed the tariffs were targeting anti-competitive behavior, but both the Labor and Coalition governments maintained that they were politically motivated.
The removal of tariffs is a significant development for the Australian wine industry, which saw exports to China peak at $1.1 billion in 2019-20 but subsequently crashed after the tariffs were imposed. However, analysts caution that exports are unlikely to return to previous levels due to a decline in wine consumption in China.
The decision to lift the tariffs came after Australia suspended an appeal to the World Trade Organization (WTO) at China's request. Trade Minister Don Farrell and Prime Minister Anthony Albanese welcomed the move, stating that it benefits both Australian producers and Chinese consumers. They also expressed gratitude to Australian grape growers and wine producers for their resilience during the challenging period.
While China has lifted most trade sanctions imposed on Australia, barriers remain to the rock lobster trade and several Australian meatworks. The prime minister and trade minister expressed hope that these barriers would be removed soon.