China Lifts Punitive Tariffs On Australian Wine

China said Thursday it would lift punitive tariffs on Australian wine, as trade ties improve between the two countries after years of tension, with Canberra soon afterwards announcing it would drop its case against Beijing at the World Trade Organization.

Duties were imposed on key Australian exports such as wine, barley and beef in 2020 after Canberra legislated against overseas influence, barred Huawei from 5G contracts and called for a probe into the origins of the Covid-19 pandemic.

But trade restrictions have tapered since Australia’s centre-left government won election in 2022 and adopted a less confrontational approach.

In view of changes in the market situation of the relevant wines in China, it is no longer necessary to impose anti-dumping duties and anti-subsidy duties on imports of the relevant wines originating in Australia,” the Chinese commerce ministry said in a statement.

It added that the tariffs would be lifted on Friday.

Tariffs and barriers have already been removed for commodities including Australian coal, timber and barley.

The foreign ministers of both countries met this month in a sign tensions between the countries were improving.

“The re-entry of Australian bottled wine into the Chinese market will benefit both Australian producers and Chinese consumers,” Australian Prime Minister Anthony Albanese, Foreign Minister Penny Wong and Trade minister Don Farrell said in a statement Thursday.

“The removal of duties means that Australia will discontinue its legal proceedings at the World Trade Organization,” the politicians said.

The statement added that Canberra would continue to lobby for the removal of remaining trade restrictions, including on rock lobster and beef from some abattoirs.

Source: AFP