Australian PM Optimistic about China Lifting Wine Tariffs

People taste red wine from Australia at the Food and Agricultural Products exhibition in Shanghai, China on Nov. 5, 2020. (STR/AFP via Getty Images)

Australian Prime Minister Anthony Albanese has high hopes that the Chinese communist regime will soon remove trade restrictions on Australian wine.

This comes after the World Trade Organisation (WTO) handed down a report on Australia’s complaint about Beijing’s punitive tariffs to both sides.

However, the report has not been made public as the two countries need some time to consider the findings.

During a press conference, the prime minister was optimistic about the prospect of a resolution to China’s wine tariffs.

“I’m very hopeful of a breakthrough that removes the impediments when it comes to wine,” he told reporters.

“The wine industry ... had substantial exports to China.

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“It’s pretty good product for China to receive. This is a win-win.”

Meanwhile, Trade and Tourism Minister Don Farrell said Australia preferred to resolve trade disputes with Beijing through discussion and dialogue rather than through the WTO’s dispute settlement system.

“There are still several challenges and unresolved issues on the trade front that we need to work through,” he said in an address to the Australia-China Business Council on Oct. 18.

“We'll keep actively engaging to resolve outstanding trade impediments affecting not only wine but also live lobster and red meat.

“In the meantime, we will continue to press our case for wine through the WTO.”

Chinese Diplomat Optimistic About Wine Trade Resolution

Similarly, China’s ambassador to Australia, Xiao Qian, was optimistic that Beijing would lift trade tariffs on Australian wine.

However, he noted that the trade dispute was a complicated issue and would take a while to resolve.

“There are concerns from the Chinese side, there are concerns from the Australian side, and we will try to sort out those issues,” he told reporters.

“We’re in that process, and we expect there will be more positive outcomes in the coming ... weeks or months.

“But I’m optimistic about the future.”

China-Australia Trade Disputes

In 2020, the Chinese regime unofficially imposed restrictions on $20 billion (US$12.6 billion) worth of Australian export products after a diplomatic fallout between the two nations.

The sanctions significantly impacted a wide range of Australian commodities, including coal, wine, timber, barley, beef, lobster and so on.

While several industries have managed to find new markets for their products, others are heavily reliant on the Chinese market and thus are still waiting for a resolution.

According to the federal government, China is still Australia’s largest trading partner, with two-way goods and services trade reaching $299 billion in 2022.

Wines from Australia are seen at the Food and Agricultural Products exhibition in Shanghai, China, on Nov. 5, 2020. (STR/AFP via Getty Images)

In early 2023, the Chinese regime showed signs of willingness to remove the trade bans and eventually lifted all restrictions on Australian coal imports in March.

Barley was also recently removed from the sanction list after Beijing suddenly lifted its 80 percent tariffs on the commodity on Aug. 4.

While the Chinese regime cited changes to its “market situation” as the main reason for the lift, experts on China issues believed the war in Ukraine had threatened China’s food security, prompting the regime to take action to ensure the food supply.

In the face of the Chinese market’s uncertainty, Mr. Farrell has continued to urge Australian businesses to diversify and look for alternative markets.

“We continue to support Australian businesses engagement in the Chinese market while encouraging them to manage risk and explore new market opportunities that are being created by the Albanese Labor government,” he told the Australia-China Business Council.

“Successful businesses know that overreliance on any single customer comes with significant risks. We should not put all our trade eggs in one basket.

“That’s not to say we turn away from doing business with China. We can walk and chew gum at the same time.”