Australia’s wine industry, which has been contending with punitive tariffs worth $1.2 billion in annual exports to China, may see a glimmer of hope for a resolution in the near future, according to China’s top diplomat in Australia, Ambassador Xiao Qian. The announcement comes as preparations are underway for a groundbreaking visit by Australian opposition leader Anthony Albanese to Beijing before the year’s end.
While Ambassador Xiao acknowledged the complexity of the issue, stating there is “no easy answer,” he expressed optimism that a settlement might soon be reached. The Australian government’s push for a review of the situation has created a pathway for a mutually acceptable solution, potentially allowing both nations to save face in the process.
Mr. Xiao emphasized the commitment to dialogue between China and Australia, as they seek to respect each other and find resolutions to existing disputes. Speaking at the annual networking day of the Australia China Business Council, he stated, “We’re in that process, and we expect there will be more positive outcomes in the coming weeks or months. But I’m optimistic about the future.”
Australia’s Trade Minister Don Farrell, also present at the networking event, expressed his preference for resolving the wine tariff standoff through bilateral negotiations rather than relying on the World Trade Organization (WTO) to arbitrate the matter.
In 2020, China imposed anti-dumping tariffs on Australian wine, reaching up to 220%, as part of a series of trade sanctions against Australian exports valued at $20 billion. These actions were taken during a period of strained relations between Beijing and the Australian government.
Australia initiated a WTO challenge to contest the wine tariffs, and a panel convened to address the dispute has recently provided its findings to both the Chinese and Australian governments. The results of this inquiry may be made public as early as the end of the month, potentially paving the way for a resolution to the long-standing issue.
