China Lifts Tariffs on Australian Wine

tendata blogImport News

ten data blog01-04-2024

· China has lifted tariffs on Australian wine, ending a three-year trade freeze.

· China first imposed tariffs in March 2021.

· China was once Australia's top wine export market.

China's Ministry of Commerce announced it would scrap anti-dumping and anti-subsidy tariffs on Australian wine starting March 29, ending a three-year punitive measure and offering long-awaited relief to Australian wine producers.

Relations soured after Canberra called for an investigation into the origins of COVID-19, leading to China imposing tariffs of up to 218.4% on Australian goods in March 2021 for five years, along with a series of other trade barriers.

Since last year, relations between the two countries have significantly improved, leading to China steadily removing trade barriers on Australian goods ranging from barley to coal, and raising hopes that punitive tariffs on Australia's largest wine export market would soon be lifted.

"Given changes in the Chinese wine market, anti-dumping and anti-subsidy tariffs will no longer be levied on imported wine originating from Australia," the ministry said in a statement.

Previously, Australian wine imported into China enjoyed zero tariffs following the signing of a free trade agreement in 2015, giving it a 14% tariff advantage over many other wine-producing countries.

According to the Ministry of Commerce statement, Australian wine accounted for just 0.14% of China's wine imports in the first half of 2023, compared to 27.46% before the tariffs were imposed in 2020.

"The tariffs China imposed on Australian wine since 2020 have effectively prevented Australian producers from exporting bottled wine to this market. Australian wine exports to China were worth $1.1 billion in 2019."

Australian top-listed winemaker Treasury Wine Estateswelcomed the news, stating it would begin working with Chinese customers to expand sales and marketing, as well as brand management.

CEO Tim Ford said in a statement, "Today's announcement is not only great news for Penfolds, but also for the Australian wine industry and wine consumers in China."

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