Australia's government expressed confidence on Sunday that the punitive tariffs imposed by China on Australian wine in 2021 would be removed early next year, providing a significant boost to Australian winemakers.
Trade Minister Don Farrell conveyed his optimism in an interview with Sky News television, stating, "I would be very confident that early in the new year we will get a favourable result from the Chinese authorities to lift the ban on Australian wine. That'll be very important for Australian winemakers; we're coming into the processing season."
This development follows the announcement in October that both parties had reached a consensus to resolve a World Trade Organisation (WTO) dispute regarding wine trade. As part of the agreement, anti-dumping tariffs, originally set to expire in 2026, will be reviewed. In 2021, Australia had filed a complaint with the WTO over China's tariffs on its wine. Notably, prior to the imposition of tariffs, China had been Australia's leading wine export market, reaching A$1.2 billion ($804 million) in the 12 months leading up to January 2020.
In a notable step towards diplomatic reconciliation, Australian Prime Minister Anthony Albanese visited China in November. This marked the first visit by a sitting Australian leader to China since 2016 and reflected the ongoing efforts of the center-left Labor government to mend strained relations with Beijing.
It is worth noting that China has already removed trade restrictions on most Australian exports that were imposed in response to Australia's call for an international investigation into the origins of the COVID-19 pandemic. These developments indicate positive progress in restoring trade relations between the two nations.
The resolution of wine tariffs is anticipated to further strengthen trade ties and offer Australian winemakers renewed access to a critical market. The International Trade Council will continue to monitor and report on developments in this important trade relationship.
