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•China's Ministry of Commerce announced the duties will range from 107.1 per cent to 212.1 per cent
•China accounts for nearly 40 per cent of Australian wine exports, by far the biggest global market.
China has imposed massive tariffs on Australian wine in an anti-dumping measure that will have a dramatic impact on the industry.
China's
Ministry of Commerce announced the duties will range from 107.1 per
cent to 212.1 per cent, effectively doubling to tripling the cost of
Australian wine.
Ministry of Commerce announced the duties will range from 107.1 per
cent to 212.1 per cent, effectively doubling to tripling the cost of
Australian wine.
"There is a causal relationship between (wine) dumping and material damage," the ministry said in a statement.
China accounts for nearly 40 per cent of Australian wine exports, by far the biggest global market.
China has argued that Australian winemakers have flooded its market with cheap wine, selling it for less than it sells in Australia.
Trade Minister Simon Birmingham said the tariffs had the effect of rendering Australian wine unviable and unmarketable in China.
"This
is a very distressing time for many hundreds of Australian wine
producers, who have built, in good faith, a sound market in China," he
said.
is a very distressing time for many hundreds of Australian wine
producers, who have built, in good faith, a sound market in China," he
said.
"It's
of great concern that China has taken this action, and it's an action
that comes on top of an accumulation of other actions during the course
of this year in particular.
of great concern that China has taken this action, and it's an action
that comes on top of an accumulation of other actions during the course
of this year in particular.
"Australia
defends to the hilt or winemakers, their integrity, and the commercial
market-based proposition and environment in which they operate."
defends to the hilt or winemakers, their integrity, and the commercial
market-based proposition and environment in which they operate."
Mr
Birmingham said it was a falsehood that Australia subsidises its wine
industry in order to dump its product on international markets.
Birmingham said it was a falsehood that Australia subsidises its wine
industry in order to dump its product on international markets.
"It is wrong, and the findings of this preliminary investigation are erroneous in fact and in substance," he said.
"Australia
will stand by our wine industry, in defending their integrity, and in
responding and appealing at every appropriate juncture to these
findings."
will stand by our wine industry, in defending their integrity, and in
responding and appealing at every appropriate juncture to these
findings."
He said the government would work with the industry to exercise all avenues in the 10-day window before the tariffs set in.
He floated the prospect of taking recourse through the World Trade Organisation.
Agriculture
Minister David Littleproud said Australia would be "vigorously fighting
against" the "seriously concerning development".
Minister David Littleproud said Australia would be "vigorously fighting
against" the "seriously concerning development".
"The
Australian Government categorically rejects any allegation that our
wine producers are dumping product into China, and we continue to
believe there is no basis or any evidence for these claims," he said.
Australian Government categorically rejects any allegation that our
wine producers are dumping product into China, and we continue to
believe there is no basis or any evidence for these claims," he said.
"We
will continue to work with our wine industry and Chinese authorities as
part of the ongoing dumping investigation, but we will of course
consider all of our options moving forward.
will continue to work with our wine industry and Chinese authorities as
part of the ongoing dumping investigation, but we will of course
consider all of our options moving forward.
"Australian
wine is hugely popular both in China and across the globe due to its
high quality and we are confident that a full and thorough investigation
will confirm this."
wine is hugely popular both in China and across the globe due to its
high quality and we are confident that a full and thorough investigation
will confirm this."
When asked if Australia would consider retaliatory measures against China, Mr Littleproud did not go into specifics.
"Australia is a fair trading nation. We will play by the rules set out to us," he said.
"We have a proud track record with respect to that. We just expect to be treated fairly in return."
The tariffs will take effect from Saturday, and while they are described as "temporary", no end date has been announced.
The tariffs come after an investigation launched by the Ministry of Commerce in August.
It follows massive Chinese tariffs on Australian beef and barley.
There have also been unofficial bans on coal, sugar, lobsters, copper and log timber coming into China from Australia since the start of the month, the South China Morning Post reports.
Treasury
Wine Estates, which produces Penfolds Grange, has suspended trade on
its shares after the announcement caused its value to plummet.
Wine Estates, which produces Penfolds Grange, has suspended trade on
its shares after the announcement caused its value to plummet.
China's
demand for Australian wine has skyrocketed, doubling to about 52
million in the space of seven years, Wine Australia estimates.
demand for Australian wine has skyrocketed, doubling to about 52
million in the space of seven years, Wine Australia estimates.
Australia accounts for a quarter of China's wine market.
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