China suspends wine tariffs on Australia amid improving ties
March 28, 2024
Sino-Australian trade ties appear to be improving after China announced on Thursday that it would lift punitive tariffs on Australian wines.
Chinese Ministry of Commerce spokesman He Yadong called the two countries “each other’s important trading partners.”
Before the tariffs were introduced, China was the main destination for Australia’s wine exports.
Before the Chinese announcement, Australian Prime Minister Anthony Albanese said he expected trade to resume soon and that he expected higher trade volumes, as seen with other reintroduced products.
“China wants good quality wine and Australia produces it,” Albanese said during a visit to a winery located in Australia’s Hunter Valley wine region.
Why were tariffs introduced?
Several trade barriers were implemented in 2020 after Australia participated in calls for an independent investigation into the COVID-19 pandemic.
The previous Australian administration also passed laws against foreign interference in domestic politics and blocked Chinese company Huawei’s involvement in the rollout of Australia’s 5G network due to security concerns.
Australia’s deepening security ties with the US have also angered Beijing.
The tariffs are estimated to have cost Australia around A$20 billion (€12 billion, $12.9 billion).
As ties improve, most trade barriers have been removed and the decision to lift tariffs on wine will take effect on Friday, according to China’s Ministry of Commerce.
Source: DW
Lori Barajas is an accomplished journalist, known for her insightful and thought-provoking writing on economy. She currently works as a writer at 247 news reel. With a passion for understanding the economy, Lori’s writing delves deep into the financial issues that matter most, providing readers with a unique perspective on current events.