The Chinese Ministry of Commerce (MOFCOM) has abolished tariffs on Australian wine imports as of March 29, 2024, as reported by the Chinese wine magazine Vino Joy. The punitive tariffs, which had been in place since 2020 and ranged up to 212%, effectively closed the previously AU$1.2bn AUD (approximately US$0.78bn) market.
Prior to the tariffs, China was the most important market for the Australian wine industry, resulting in a significant surplus of red wine. The Australian wine industry welcomes China's move and hopes for a revitalization of trade between the two countries."
Tim Ford, CEO of Treasury Wine Estates, commented on this development in a press release: “Prior to the tariffs, China was the most important market for the Australian wine industry, resulting in a significant surplus of red wine in Australia. The Australian wine industry welcomes China's move and hopes for a revitalization of trade between the two countries.” He added, “We're mindful it will take time to sustainably regrow both supply and demand."
Originally, the tariffs were increased due to diplomatic disagreements when Australia investigated the origins of the COVID-19 virus. Before the introduction of the tariffs, Australian exporters benefited from zero tariffs under the Free Trade Agreement, while other countries faced a 14% tariff. This gave them a market advantage and contributed to them supplying around a quarter of China's total wine imports. PD
