Punitive levies lifted after three-year imposition

China has declared the termination of anti-dumping and anti-subsidy tariffs on Australian wine, effective March 29, according to the Chinese Commerce Ministry. This decision marks the conclusion of three years of punitive tariffs and brings relief to Australian wine producers.

Initially imposed in March 2021 for a five-year period, the tariffs, reaching as high as 218.4 per cent, were part of a series of trade barriers implemented on Australian commodities amidst deteriorating diplomatic relations. Canberra’s call for an investigation into the origins of COVID-19 exacerbated tensions, leading to the imposition of these punitive measures.

However, diplomatic ties between the two nations have significantly improved since last year, prompting China to gradually lift trade barriers on various Australian goods, including barley and coal. The removal of these punishing tariffs on wine shipments to Australia’s primary wine export market has been eagerly anticipated.

The Chinese commerce ministry cited changes in the domestic wine market as the reason for lifting the tariffs, deeming them unnecessary. Prior to the imposition of tariffs in 2021, Australian wines imported into China enjoyed zero tariffs under a free trade agreement signed in 2015, granting them a significant competitive advantage over other wine-producing nations with a 14 per cent tariff differential