28 March 2024 , 12:17
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China has decided to remove the heavy tariffs it had placed on Australian wine over three years ago, signalling a positive shift in relations between the two nations.
The Chinese Ministry of Commerce announced that this change will come into effect from Friday. Back in 2020, during a diplomatic disagreement over Australia's backing for a worldwide investigation into the origins of COVID-19, China slapped tariffs on Australian wine, causing the duties to soar above 200%.
This move severely impacted Australian wine producers, as China was their biggest market for wine exports. The Australian government has expressed its approval of this decision, stating that the removal of tariffs comes at a "critical time for the Australian wine industry."
He Yadong, a spokesperson for China's Ministry of Commerce, highlighted that China and Australia are "each other's important trade partners." "We are willing to work with Australia to resolve each other's concerns through dialogue and consultation and jointly promote the stable and healthy development of bilateral economic and trade relations," he said.
Before the tariffs were introduced in 2019, the trade was worth 1.1 billion Australian dollars annually to the local economy. Australian Prime Minister Anthony Albanese said the level of trade would likely increase when restrictions were scrapped.
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"We reckon that the resumption of trade, which we think is imminent, will see an even higher amount because that's what we've seen with other products that have been resumed," he said during a visit to a winery located in Australia's Hunter Valley wine region on Thursday before the lifting of tariffs was announced. "China wants good high-quality wine and Australia produces it."
China imposed a raft of sanctions on Australian goods in 2020 during the most recent nadir in the bilateral relationship. It is estimated that the tariffs cost the Australian economy 20billion Australian dollars.