Another blow for Australia’s wine industry today, with China confirming it will go ahead with massive tariffs on our exports.
Beijing had already warned Chinese businesses to stop importing Australian wine, while it carried out an investigation into ‘anti-dumping’ violations.
There are accusations that Australian producers have been selling wine for below production cost, which is hurting Chinese winemakers.
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Australia has consistently denied the allegations, with China’s investigation not due to wrap up until next year.
But preliminary findings have caused Beijing to impose tariffs of up to 200 percent from this weekend, which will significantly impact Australian businesses selling in China.
The $2.9 billion-a-year industry relies on Chinese exports, with many suppliers reporting the exports account for around 40 percent of their business.
The largest company, Treasury Wine Estates – which owns Penfolds and Wolf Blass, has already put in place a trading halt, with an announcement on the company’s future expected this afternoon.
— CommSec (@CommSec) November 27, 2020
Agricultural Minister David Littleproud says the decision by China seems to be about something else, and the government will continue to support the wine industry.