China to review Australian wine tariffs ahead of PM’s trip to Beijing

Prime Minister Anthony Albanese will travel to meet China’s Premier Li Qiang next month and China has agreed to review the tariffs it imposed on Australian wine exports. 

China has agreed to review the tariffs it imposed on Australian wine exports following “productive discussions” between both countries.

Prime Minister Anthony Albanese announced the decision, ahead of his trip to Beijing, where he will meet with President Xi Jinping and Premier Li Qiang next month.

It will be the first time a prime minister has visited the nation since 2016.

Australian wine exports to China were previously hit with tariffs of up to 220 per cent in 2020 after relations deteriorated.

Under the deal, China has agreed to launch a five-month review into the tariffs, if Australia suspends its World Trade Organisation challenge, pending the outcome of the review.

In a statement, Albanese said he would continue to build a “stable relationship” between the two countries.

“I look forward to visiting China, an important step towards ensuring a stable and productive relationship,” he said.

“Prime Minister Whitlam’s historic visit laid the groundwork for the diplomatic, economic and cultural ties that continue to benefit our countries today.

“I welcome the progress we have made to return Australian products, including Australian wine, to the Chinese market. Strong trade benefits both countries.”

China remains Australia’s largest trading partner, amounting to almost a third of our total trade.

Albanese will visit China from November 4 to 7.

Ahead of the state visit, China released Australian journalist Cheng Lei from detention earlier in October. Last week, Albanese’s Labor government opted against revoking a lease held by a Chinese company on the northern port of Darwin after a national security review.

Australia is also set to remove anti-dumping measures on the import of Chinese wind turbines, which has been welcomed by Beijing as a step towards bilateral co-operation.

A resumption of bulk exports to China would provide some relief to Australia’s red wine industry which has struggled with overcapacity in the past year. Rabobank has estimated that there are over 2bn litres of wine, or 2.8bn bottles, in storage in Australia.

Tim Ford, chief executive of Treasury Wine Estates which is Australia’s largest wine producer, said the tariff review was “great news” and that the industry would look forward to a “new era” as talks progress. 

“There are only positives to come out of a favourable tariff review for the Chinese consumer, customers and wine category, for the Australian wine industry and for TWE,” he said.

With Thanks Reference to: https://www.9news.com.au/national/china-to-review-australian-wine-tariffs-ahead-of-prime-minister-anthony-albaneses-trip-to-beijing/021f8fff-ee86-4071-8cf2-7e42bd445820 and https://www.ft.com/content/56e7c983-7c5a-448b-b7e2-d7bc67e567f5