The federal government is “deeply concerned” by China’s decision to impose temporary anti-dumping measures on Australian wine from this weekend, in a further ramping up of tensions between the two countries.
Importers of Australian wine will have to pay deposits of 107.1 per cent to 212.1 per cent starting this Saturday, China’s commerce ministry said on Friday.
It said it has determined that Australian exporters have been dumping wine into its market, and that it was taking the temporary measure in response to “substantive harm caused to the relevant domestic wine industry”.
Agriculture Minister David Littleproud on Friday said the government is “deeply concerned” by the move from Australia’s top wine market – a $2.9 billion industry that accounts for 37 per cent of its total wine exports.
“The fact is Australia produces amongst the least subsidised product in the world and provides the second-lowest level of farm subsidies in the OECD,” he said in a statement.
“Today’s decision is a seriously concerning development and one which Australia will be vigorously fighting against.”
Later speaking to reporters, Mr Littleproud suggested the imposition of tariffs was based on other matters, rather than any wrongdoing by the wine industry.
“The Australian government will vigorously defend the industry, but we’re deeply concerned by this and in light of the recent comments by China, it gives the perception that this decision is predicated on that rather than any wrongdoing by the wine industry, and we ask for open dialogue with them to get assurances around that,” he said.
China – Australia’s biggest trade partner – has threatened economic retaliation since Canberra called for an inquiry into the COVID-19 pandemic, and has already suspended some timber and beef imports.
It comes after China launched an anti-dumping probe into Australian wine imports in August, with the domestic producers there saying Australian wine-makers were cutting prices unfairly to increase their share of the largest consumer market in the world.
The Australian government denied the allegations and described them as “perplexing”.
Wine exports to China hit a record A$1.3 billion last year, according to Australian government data, making it the biggest market by value for the product.
Shares in Treasury Wine Estates Limited – which owns the popular Penfolds brands – sank more than 11 per cent on the news.
With reporting by AFP.
