Australia’s agriculture minister has expressed a desire for a distinct and focused dialogue with China to resolve their ongoing dispute regarding wine trade. This move comes as Australia rejects Beijing’s proposal to link the wine issue with other trade matters, as both nations cautiously work towards mending their strained relations.
Last month, China removed tariffs on Australian barley, raising optimism for the potential relaxation of wine tariffs that have been in place since 2021. These tariffs have significantly impacted Australia’s wine exports.
The deterioration in bilateral relations began in 2020 when Australia called for an inquiry into the origins of COVID-19. This action triggered a series of retaliatory measures by Beijing, including various trade restrictions that negatively affected Australia’s export-driven economy.
China recently put forth a proposal for a “packaged solution,” which would connect the wine dispute with issues concerning duties on Australian imports of Chinese railway wheels, wind towers, and stainless steel sinks, according to the state news agency Xinhua.
However, Agriculture Minister Murray Watt firmly stated on Sunday, “We see them as entirely separate matters.” The Australian government aims to resolve the wine dispute in a manner similar to how the barley dispute was successfully addressed, through constructive dialogue, as stated during an interview with the Australian Broadcasting Corp.
“We will continue our engagement with the World Trade Organization (WTO) in the case of wine, and we will persist in defending our position in the steel dispute,” Watt emphasized, referring to the ongoing disputes within the global trade body.
Before the onset of the COVID-19 pandemic, China was Australia’s leading wine export market, with exports reaching a peak of A$1.2 billion ($770 million) for the 12 months ending in January 2020. However, in the year ending June 2023, these exports had sharply declined to A$8.1 million ($5.2 million), underscoring the economic impact of the ongoing trade tensions between the two nations.
