Yahoo Finance China’s huge move on Aussie wine
Australia is on its way to solving a painful dispute with China that has gutted our $1.2 billion wine trade with the country.
Beijing imposed tariffs of up to 200 per cent on Australian bottled wine in March 2021.
The decision was considered a backlash to the federal government calling for an inquiry into the origins of Covid-19, and the case was reported to the World Trade Organisation.
Now China’s Commerce Ministry say they are proposing a “package” deal to resolve the dispute after a period of improved relations with the Australian government.
“We are willing to meet the Australian side halfway, further enhance mutual trust and co-operation on the basis of the settlement of the barley case dispute,” Ministry of Commerce spokesman He Yadong said, according to a report in Beijing’s Xinhua News Agency.
Treasury Wine Estates shares jumped 2.64 per cent to $12.05 following China’s announcement.
The brand boasts popular labels 19 Crimes – backed by American rapper Snoop Dogg – and Penfolds among its portfolio.
The spokesman said the two nations had held “in-depth discussions” this year in a bid to resolve their trade disputes in the WTO.
He also warned that China has “serious concerns” about Australia’s anti-dumping measures against three products including wind towers, railway wheels and stainless steel sinks.
Anti-dumping measures can be applied if a product is being exported to another country at a price below the normal for the same product in the exporting country, causing damage to the domestic industry.
He said the two sides are working to quickly resolve such disputes through dialogue and consultation.
