China ends retaliatory tariffs on Australian wine after three years

After three-year tariffs on Australian wine, China's Ministry of Commerce said on Thursday they're ending them. This marks the end of an especially difficult period for the sector.

The result occurred at a crucial moment for the Australian wine sector, according to Prime Minister Anthony Albanese of Australia. He said that reintroducing Australian bottled wine to the Chinese market will benefit Australian producers and Chinese consumers.

Five months after Albanese announced that Australia and China had resolved their issues, the tariffs have been lifted. Beijing proposed to pause its WTO lawsuit against China if Canberra agreed to a five-month assessment of the tariffs. Australia claimed in that instance that the duties violated WTO regulations.

The announcement came a week after Chinese Foreign Minister Wang Yi visited Australia and three days before a five-month review was due to end on Sunday.

China used to be the biggest buyer of Australian wine, importing up to $1.2 billion worth in 2019. But after Australia requested a COVID-19 investigation, China imposed high tariffs on Australian wine and cut its purchases to less than $10 million a year. As a result, 22 other countries have started buying more Australian wine. China also banned imports of Australian barley, beef, timber, coal, and lobster.

Australia's relationship with China has gotten better under Prime Minister Albanese's leadership. Foreign Minister Penny Wong visited China in December 2022, the first such visit since 2019, and Prime Minister Albanese went to China in November, marking the first Australian prime ministerial visit in seven years. Trade barriers have mostly been removed, and Australian journalist Cheng Lei was released after being detained in Beijing for three years. Currently, there are only some informal restrictions on importing beef and lobster from certain facilities.