China will drop punitive tariffs on Australian winemakers after a months-long review.
Beijing moved to eliminate the tariffs on Thursday, with a deadline for the decision on Sunday.
It had agreed to a five-month review of tariffs in return for the World Trade Organization suspending a dispute against Australia.
China will drop punitive tariffs on Australian winemakers after a months-long review
An interim report from a Beijing-initiated investigation into the measures recommended scrapping the tariffs.
Trade in 2019, before the tariffs were in place, was worth $1.1 billion a year and would likely increase if restrictions were removed, Prime Minister Anthony Albanese said on Thursday during a visit to a winery in Pokolbin.
“We think the resumption of trading, which we think is imminent, will see an even higher amount because we have seen that with other products that have resumed,” he said.
‘China wants good, high-quality wine and Australia produces it.’
Trade for the sector fell exponentially after China imposed a 220 percent tax on Australian wine exports.
Beijing imposed trade sanctions worth $20 billion on Australian products at the height of diplomatic tensions in 2020.
Barriers remain for Australian lobster and beef.
Chinese Ambassador to Australia Xiao Qian raises a glass
Trade Minister Don Farrell met with Chinese man in Australia, Xiao Qian, on Wednesday.
Chinese Foreign Minister Wang Yi visited Australia and met with Foreign Minister Penny Wong earlier this month, while the Chinese Prime Minister is expected to visit Australia later this year.
Australia lost its case in a dispute between the World Trade Organization and China over additional taxes on steel products.
China complained to the international body in June 2021 about Australian tariffs on railway wheels, wind turbines and stainless steel wells.
Australia had acted inconsistently with parts of an anti-dumping agreement in all three cases, the WTO found.
Australia had also filed two disputes against China over barley and wine tariffs.
Both were paused by the government to allow Beijing to review the measures.
Trade barriers for barley have finally been lifted and a move for wine is expected soon.