China has announced that it will lift tariffs on Australian wine that were imposed over three years ago due to a diplomatic feud between the two countries. The decision, which will take effect on Friday, is seen as a positive step towards improving ties between China and Australia. The tariffs on Australian wine had skyrocketed above 200% in 2020, causing significant economic losses for Australian wine producers, as China was their top export destination for wine. The Australian government welcomed the decision, stating that it comes at a critical time for the Australian wine industry.
The trade in Australian wine between the two countries was worth 1.1 billion Australian dollars annually before the tariffs were put in place. Australian Prime Minister Anthony Albanese expressed optimism that the resumption of trade would lead to even higher levels of trade between the two countries. He highlighted the quality of Australian wine and China’s demand for it as a key factor in the potential increase in trade volume. The lifting of tariffs is expected to benefit the Australian economy and provide a boost to the local wine industry.
The imposition of tariffs on Australian goods, including wine, in 2020 was seen as a form of punishment by China for Australia’s actions, such as passing laws to prevent foreign interference in domestic politics, banning Huawei from 5G network rollout, and calling for an independent investigation into the origins of COVID-19. The strained relationship between the two countries also stemmed from Australia’s deepening security ties with the United States and the AUKUS agreement. However, most of the tariffs have now been lifted as relations between China and Australia have improved.
The thaw in the bilateral relationship between China and Australia has been evident in recent months, with the new Australian government taking steps to repair ties with Beijing. This includes suspending a complaint to the WTO to reopen the Chinese market to Australian barley and halting another WTO dispute over sanctions on Australian wine. The decision to lift tariffs on Australian wine is seen as a positive development in the ongoing efforts to strengthen economic and trade relations between the two countries. Both China and Australia have expressed a commitment to resolving concerns through dialogue and consultation.
Overall, the lifting of tariffs on Australian wine by China signifies a significant step towards normalizing trade relations between the two countries. The decision is expected to benefit Australian wine producers and the local economy, as well as contribute to the broader efforts to improve ties between China and Australia. The move comes at a critical time for the Australian wine industry, providing a much-needed boost after years of economic losses due to the tariffs. Both countries have expressed a willingness to work together to promote the stable and healthy development of bilateral economic and trade relations, signaling a positive outlook for future cooperation.
