Australian exports including coal and barley were easily routed to different markets, but the wine industry — hit with tariffs of up to 175 per cent — struggled to cope.
Wine exports to China dropped from A$1.2 billion prior to the tariffs being imposed to only A$8 million in the year to date, according to the Australian Grape and Wine trade body.
Ahead of the state visit, China released Australian journalist Cheng Lei from detention earlier in October. Last week, Albanese’s Labour Government opted against revoking a lease held by a Chinese company on the northern port of Darwin after a national security review.
Australia is also set to remove anti-dumping measures on the import of Chinese wind turbines, which has been welcomed by Beijing as a step towards bilateral co-operation.
A resumption of bulk exports to China would provide some relief to Australia’s red wine industry, which has struggled with overcapacity in the past year. Rabobank has estimated that there are over 2b litres of wine, or 2.8b bottles, in storage in Australia.
Tim Ford, chief executive of Treasury Wine Estates, Australia’s largest wine producer, said the tariff review was “great news” and the industry would look forward to a “new era” as talks progress.
“There are only positives to come out of a favourable tariff review for the Chinese consumer, customers and wine category, for the Australian wine industry and for TWE,” he said.
Written by: Nic Fildes and Ed White.
© Financial Times