China has announced plans to lift anti-dumping and anti-subsidy tariffs on Australian wine starting Friday, signaling an end to three years of punitive measures amid improving relations between the two nations.
Initially imposed in March 2021 for a duration of five years, the tariffs, reaching up to 218.4 percent, were part of a series of trade barriers imposed on Australian exports amidst heightened tensions. These tensions escalated following Australia’s call for an investigation into the origins of Covid-19 and its decision to exclude Huawei from 5G contracts, among other disputes.
However, bilateral ties have seen notable improvement since the Labor Party assumed power in Australia in 2022. This shift has prompted Beijing to gradually dismantle trade barriers on Australian commodities, including barley and coal.
The Commerce Ministry stated that the changing landscape of China’s wine market rendered the imposition of anti-dumping and anti-subsidy tariffs on Australian wine unnecessary.
Spokesperson He Yadong emphasized the significance of China and Australia as crucial trading partners and expressed willingness to address mutual concerns through dialogue and consultation, aiming to foster stable and healthy bilateral economic and trade relations.
The Australian government welcomed the decision, noting the mutual benefits for Australian wine producers and Chinese consumers upon the re-entry of Australian bottled wine into the Chinese market. Prime Minister Anthony Albanese, along with Foreign Minister Penny Wong and Trade Minister Don Farrell, underscored the discontinuation of legal proceedings at the World Trade Organization following the removal of duties.
However, Canberra affirmed its commitment to advocating for the lifting of remaining trade restrictions, which encompass rock lobster and beef from select abattoirs.
The move marks a significant step towards restoring trade ties between China and Australia, reflecting a shift towards cooperation and dialogue in navigating bilateral relations.
