Australia anticipates the removal of China’s wine tariffs in the near future, as revealed by Assistant Trade and Tourism Minister Tim Ayres during the 13th World Trade Organisation (WTO) ministerial conference in Abu Dhabi, as reported by Sky News.
A delegation from Australia, including Minister Don Farrell, participated in the conference aimed at evaluating the multilateral trading system’s operation and determining the WTO’s future agenda. Ayres conveyed to the news outlet that the Australian government expects the relaxation of tariffs to occur shortly after the conclusion of the ongoing review.
Ayres emphasized the government’s unwavering commitment to normalizing relations with China and eliminating the remaining trade barriers hindering Australian exports to the country. He highlighted significant progress, noting that AU$18 billion worth of impediments out of the AU$20 billion initially imposed have been removed.
Regarding China’s review process, Ayres referenced a similar approach to the barley review, expressing optimism that China will follow through, as they did with barley tariffs. This announcement follows China’s December declaration of a review into anti-dumping and anti-subsidy tariffs on Australian wine imports.
The resolution effort gained momentum after China and Australia reached an agreement in November 2023 to settle the WTO dispute ahead of the tariff expiration in 2026. China had already announced the elimination of 80.5% tariffs on Australian barley and lifted an informal ban on Australian coal earlier.
China initially imposed steep tariffs on Australian wine exports in November 2020, resulting in a drastic decline in the Chinese market for Australian wine. However, recent discussions between Australian Prime Minister Anthony Albanese and Chinese President Xi Jinping signal a potential thawing of relations.
Despite the challenges posed by tariffs, Australian wine exports outside of China saw a 7% growth in value terms, reaching AU$2.03 billion, marking the highest value since 2010, as reported by the drinks business in 2023.
