China has announced today that it will be lifting puntive tariffs on Australian wine, re-opening the Chinese market to Australian wine producers after a three-year-old trade freeze that has dented AU$1.2 billion wine trade.
The Ministry of Commerce posted today on its website about the decision saying, “In view of the changes in the relevant wine market conditions in China, it is no longer necessary to impose anti-dumping duties and countervailing duties on imported wines originating in Australia.”
The change will come into effect starting from this Friday, after a five-month expedited review as relations between the two countries warm.
In response to this positive development, Treasury Wine Estates CEO Tim Ford described it as a significant milestone for the Australian wine industry, as well as for partners and consumers in China.
The Australian wine giant will begin to expand its premium and luxury Australian wine distribution in China as well as increasing investment in local sales and marketing resources.
“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,” Ford stated.
“This announcement signals the start of our ramp up to re-establish our Australian luxury and premium wine distribution in China and it shouldn’t be too long before local Chinese consumers have more access to our great wines,” he added.
Prior to the tariffs, China was Australia’s largest wine export market valued at around AU$1.2 billion. In March 2021, China officially imposed up to 218% tariffs on Australian wine, which plunged Australian annual wine trade to the mainland to less than AU$8 million.
The optimism is however tampered with caution, as it will take time to rebuild the market.
“We’re excited to bring more of our Australian luxury and premium wines back to the China market but we’re mindful it will take time to sustainably regrow both supply and demand. We’ll also maintain the strong momentum of growth in key global markets where Penfolds has successfully grown its business in recent years,” said Ford.
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