Chinese Ambassador Xiao Qian provided reassurance on Monday regarding China’s ongoing review of tariffs imposed on Australian wine, suggesting positive progress while refraining from confirming Australia’s assertion of a potential resolution by the end of March.
Speaking at the Australian Financial Review Business Summit, Xiao stated, “Currently, Chinese authorities are reviewing and investigating our tariffs on Australian wine and things are moving on the right track, in the right direction.”
Australia’s trade minister had earlier indicated that China would conclude its review of the longstanding wine tariffs by the end of March.
The imposition of tariffs by Beijing since 2020 had a significant impact on several Australian export industries, including coal and lobsters, amid escalating tensions between the two nations. These tensions stemmed from Australia’s advocacy for an investigation into the origins of the COVID-19 pandemic, among other factors.
While Australia pursued complaints against China’s actions at the World Trade Organization (WTO), it halted these disputes following China’s decision to lift the tariffs. However, the issue of China’s hefty tariffs, reaching up to 218% on Australian wine, remains unresolved.
Tim Ford, CEO of Treasury Wine Estates, Australia’s largest wine producer, discussed the company’s response to the tariffs at the summit. Despite the challenges posed by the tariffs, Ford expressed readiness to re-engage with the Chinese market, noting the company’s efforts to diversify its operations. He emphasized maintaining customer relationships and affirmed preparedness for a potential market re-entry.
Australia, a prominent global wine exporter, faced significant repercussions from the tariffs, with over 2 billion liters of wine in storage as of mid-2023, equating to approximately two years’ worth of production. The surplus stock, exacerbated by the urgency to liquidate inventory, poses concerns of spoilage as producers seek to offload wine at reduced prices.
