China to Impose 212% Tariff on Australian Wine

  • After Australia proposed to investigate the origin of the new coronavirus pneumonia, the confrontation between China and Australia continued.
  • In the past, China has repeatedly imposed access restrictions on imported goods as a threat to Australia.
  • Australia strictly refutes the dumping allegations and accuses China of "unfair and baseless" actions.

The Ministry of Commerce of China made a preliminary ruling on the Australian wine anti-dumping investigation, stating that “there is dumping of imported wines originating in Australia.’ Per the announcement, starting from November 28, a tariff of 107% to 212.1% will be imposed on wine imported from Australia in the form of a deposit.

Australian vineyard

In the past, China has repeatedly imposed access restrictions on imported goods as a threat to Australia. It has previously imposed import restrictions on products such as barley, beef, and firewood.

Australian Trade Minister Simon Birmingham criticized China’s Ministry of Commerce’s punitive measures on Friday as “extremely unfair, unreasonable and baseless”, and said that China’s dumping allegations were “factual and fundamentally wrong.”

Birmingham pointed out at the press conference that Australia is aware that China is implementing a “planned strategy to put pressure on many different areas.” He said that Canberra will continue to lodge complaints with the World Trade Organization in response to China’s continuous trade sanctions against Australia.

“This is a devastating blow to those businesses who trade with China in the wine industry,” Birmingham said. “It will render unviable for many businesses their wine trade with China. And clearly, we think it’s unjustified, and without evidence to back it up.”

Australian Minister of Agriculture David Littleproud also said: “We’re trying to get an appreciation of the reasoning behind the determination in introducing these tariffs.”

“That’s why we’re moving quickly to work with the industry and my officials and Dfat officials in Beijing to get an understanding so we can put our case around this decision imposed on the wine industry that we feel is quite outrageous, and to be honest, disproportionate to any reason that anyone has put to us subsequently.”

The Associated Press pointed out that China’s practice of covering up information in the early stages of the new coronavirus epidemic has been criticized by international parties.

The Communist Party of China has been trying to divert the target, believing that the virus comes from other countries, but there is not much evidence to support this argument.

After Australia supported an independent investigation into the origin of the new coronavirus pneumonia, the confrontation between China and Australia continued.

Birmingham said it was “a very distressing time for many hundreds of Australian wine producers, who have built in good faith a sound market in China”.

Roos in the vineyard

“Australia defends to the hilt our winemakers, their integrity, and the commercial market-based proposition and environment in which they operate.

The idea that Australia somehow subsidises our wine industry for it to be able to dump or sell its product below cost on international markets is a falsehood.”

At the same time, Australia is actively signing a defense agreement with Japan, and standing on the same front with the United States and the governments of many Southeast Asian countries, expressing concerns about China’s construction of military installations in the disputed waters of the South China Sea.

As soon as the news of China imposing huge tariffs on Australian wine came out, the main Australian stock market index fell 0.5% on Friday. Market analyst Jeffrey Halley pointed out in a report: “To some extent, Australia’s poor skills in exporting to China are its own mistakes.”

As the new coronavirus epidemic hits the United States, Europe and other major economies, the Chinese economy has gradually recovered from the epidemic, so the Chinese market is particularly important at this time. Australian ABC Broadcasting Corporation pointed out that Australia exports 1 billion Australian dollars worth of wine to China every year.

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Benedict Kasigara

I have been working as a freelance editor/writer since 2006. My specialist subject is film and television having worked for over 10 years from 2005 during which time I was the editor of the BFI Film and Television.

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