China's government has officially abolished heavy tariffs on Australian wine, potentially providing a boost to an industry grappling with low prices and oversupply on a global scale. The decision comes as Beijing gradually eases trade barriers imposed on approximately $20 billion worth of Australian exports during 2020 and 2021.
Yet, barriers remain to the $700 million rock lobster trade, and several Australians meatworks remain blocked from the market.
The Commerce Ministry in Beijing has recently made an announcement regarding the removal of anti-dumping duties and countervailing duties on imported wines from Australia. These duties are typically imposed on imported goods to prevent dumping. For example, where a country sells goods at prices lower than their home market or production costs, and to counteract foreign subsidies to exporters.
This decision represents a pivotal moment for Australian wine exporters. Following the imposition of tariffs that skyrocketed up to 220%. The peak of Australian wine exports to China was recorded at $1.1 billion in the 2019-20 period, but the figures plummeted following the imposition of tariffs.
Trade Minister Don Farrell and Prime Minister Anthony Albanese have lauded the decision, highlighting its timely significance for the industry. They noted that the removal of duties signifies the discontinuation of legal proceedings at the World Trade Organisation, initiated by the former Coalition governTrament.
Treasury Wines Estate chief executive Tim Ford said, "The removal of tariffs on Australian wine exports to China is terrific news and is cause for celebration across the Australian wine industry and with our partners and consumers in China."
However, analysts caution that while the removal of tariffs presents a significant opportunity, a return to the peak export levels of the past decade is unlikely. This caution stems from a decline in wine consumption in China in recent years. While industry leaders remain optimistic about demand in the wine market overseas ,our members at home know that domestic demand for some goods and services never goes out of favour. With our free membership, you can be sure to stay one step ahead of market shifts with access to the latest news, industry trends, preferred pricing opportunity and contracts. Join today to start realising the benefits of your free Procurement Australia membership.
Source: https://www.abc.net.au/news/2024-03-28/china-government-officially-abolishes-heavy-tariffs-on-wine/103644884
