(Australia) China ends anti-dumping duties on Australian wines

The Ministry of Commerce of China issued Announcement No. 11 of 2024 on March 28. In view of the changes in the relevant wine market in China, it has decided to terminate the imposition of anti-dumping duties on imported wines originating in Australia from March 29, and terminate the anti-dumping duties. Countervailing duties will no longer be levied. The wine trade dispute between China and Australia, which lasted for more than three years, was officially settled.

From March 28, 2021, China will impose anti-dumping duties of 116.2-218.4 per cent on imported wine originating in Australia for a period of five years. Affected by this, Australian wine exports to China fell off a cliff, and China once fell out of the forefront from the largest export market of Australian wine.

On November 30, 2023, the Ministry of Commerce initiated a review of the case at the request of the Australian Vine and Wine Association; this week, China and Australia notified the Dispute Settlement Body of the mutually agreed solution to the WTO dispute (DS602). Public opinion generally regards this move as another landmark node in the improvement of Sino-Australian economic and trade relations after the abolition of barley tariffs in August last year.

The Australian wine industry has high expectations for a return to the Chinese market-China once accounted for nearly 40% of the value of Australian wine exports before tax. However, some analysts pointed out that the overall consumption of Chinese wine has shrunk significantly in the past three years, and supplier countries such as Chile and France have filled the market gap. Australian wine's return to the Chinese market still needs to face the re-competition of prices and channels.

Source: China Ministry of Commerce Announcement No. 11, 2024; Xinhua News Agency; Wine Australia, March 2024.