SYDNEY (Reuters) – Australian Trade Minister Don Farrell expressed optimism on Tuesday that the ongoing trade dispute with China concerning tariffs imposed on Australian wine could see a resolution “in a few weeks’ time,” potentially clearing the way for increased wine exports to China.
The dispute stems from Beijing’s response in November 2020, following Canberra’s call for an inquiry into the origins of COVID-19, which led to China imposing tariffs on various Australian commodities, including barley, wine, and coal, impacting Australian exports significantly.
However, recent developments suggest a thaw in relations, with China gradually removing trade barriers as diplomatic ties improve. Australian officials and industry stakeholders anticipate that the review of wine tariffs initiated by Beijing last year could result in their removal as soon as next month.
Farrell indicated progress in discussions with China’s Commerce Minister, Wang Wentao, stating that both sides are nearing an agreement. “I’m confident that the discussions I had yesterday with the commerce minister will result in them carrying through on what they undertook, which was to expedite the review of the tariffs and that we will get a result on that in a few weeks’ time,” Farrell stated in an interview with state broadcaster ABC on Tuesday.
Australia’s government previously expressed confidence in December that the tariffs would be lifted in early 2024, underscoring hopes for a swift resolution to the trade dispute, which has weighed heavily on Australian wine exports to China, valued at approximately $800 million in the year leading up to November 2020.
