China’s Ministry of Commerce is hinting at a crucial decision on whether to lift tariffs on Australian wines, as Australian wine exporters wait with bated breath on the final green light to re-enter China market.
At a press conference held on February 22, spokesperson He Yadong stated the ministry is diligently advancing its review process, with a commitment to reach an “objective, fair, and impartial decision,” signaling a pivotal moment could be near amid warming relations between China and Australia.
“Moving forward, the Ministry will advance the investigation process in accordance with the law, thoroughly review the claims and evidence presented by all stakeholders, and ensure the rights of all parties are fully protected, aiming to reach an objective, fair, and impartial decision,” He says, without providing specific timeline.
This update comes amid improved ties between China and Australia, with China agreeing last November to reconsider the anti-dumping tariffs it had imposed on Australian wines.
The Trade and Economics Bureau, under the Ministry of Commerce, posted the notice on November 30, stating that the review process is expected to conclude by the end of November next year. Stakeholders have 20 days from the issue date to submit written comments on the review.
Earlier statements from Australia’s Prime Minister’s Office and Wine Australia indicated that the review would be expedited, lasting around five months starting from the end of October last year and ending in March.
Since the implementation of tariffs reaching up to 218% in March 2021, Australia’s annual wine exports to China plummeted from AU$1.2 billion to less than AU$10 million.
Australia’s leading wine giant Treasury Wine Estates earlier stated that it’s ready to divert stocks to China within weeks should the decision be positive.
“We remain confident that China will continue to be an attractive Luxury wine market and a significant growth opportunity for Penfolds over the long-term,” says the company in its latest financial report. TWE owns brands including Penfolds, Wolf Blass and most recently DAOU Vineyards in the US.
Prior to the tariffs, China counts as TWE’s most lucrative export market, thanks to the popularity of its flagship brand Penfolds. The market contributed 30% of TWE’s profits before China slapped up to 218% anti-dumping tariffs on Australian wines in March 2021.
