What Happened After China Imposed a 200% Tariff on Australian Wine

Public Export Value Down 96% in Last 4 Months
Actively Seeking Alternative Export Countries Like Europe and the US

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Suhwan] China has imposed anti-dumping tariffs exceeding 200% on Australian wine amid conflicts with Australia, implementing sanction measures that caused Australia's wine exports to China to plummet by about 96%. The Australian wine industry is actively seeking alternative export markets in response.

Since last year, China has restricted imports of Australian wine and has been seizing large quantities of Australian wine arriving at major ports. Recently, the South China Morning Post (SCMP) reported that over 8,000 liters of Australian wine were seized by authorities at Shenzhen port last month due to China's import restrictions on Australian wine. Following 23,000 liters of wine being held up at Shenzhen port in January, about 11,000 liters were seized in February, continuously blocking the export route of Australian wine to China.

These measures by China came amid diplomatic tensions between the two countries since last year. Earlier, in April last year, Australia officially called on the international community to investigate the theory that the COVID-19 virus originated in Wuhan, China, which provoked a strong backlash from China and led to diplomatic conflicts. Subsequently, China imposed anti-dumping tariffs or import restrictions on Australian barley, beef, timber, hay, and other products as economic retaliation.

Amid this, China officially launched an investigation into the dumping issue of Australian wine in August last year. It also implemented unofficial import restrictions, and from November, Australian wine began to be seized at major ports such as Shenzhen. In March, after concluding the anti-dumping investigation, the Chinese Ministry of Commerce determined that dumping and illegal subsidies existed in Australian wine. Consequently, authorities imposed anti-dumping tariffs ranging from 116.2% to a maximum of 218.4% on Australian wine.

Due to these seizure measures and anti-dumping tariffs imposed by the Chinese government, Australia's wine export value to China sharply declined. The Australian Wine Industry Association released a report on the 29th (local time), stating, "From December last year to March this year, the export value of wine to China was 12 million Australian dollars," adding, "This is a significant decrease compared to 325 million Australian dollars exported during the same period last year." The export value of wine to China dropped by about 96% compared to before China's economic retaliation measures.

On the other hand, during the same period, exports of Australian wine to Europe and the United States continued to increase. This is interpreted as a result of the Australian wine industry seeking alternative export countries after the export route to China was blocked. Andreas Clark, chairman of the Australian Wine Industry Association, said, "Since last year until now, export values to European countries have reached the highest level in the past 10 years," adding, "Exports to the United Kingdom increased by 33%."

Chairman Clark also emphasized, "Exports to the United States and Canada have also increased," and "Overall, wine exports to countries other than China have risen."

In fact, as exports to other countries such as Europe increased, the impact on export values caused by China's sanctions was partially offset. According to the Australian Wine Industry Association, total export values from March last year to March this year fell by about 4% compared to the same period the previous year.

Meanwhile, the Australian government plans to actively respond to China's anti-dumping tariffs on Australian wine. The Australian Department of Trade previously stated, "We are reviewing all possible measures, including diplomatic solutions such as bilateral consultations and filing complaints with the World Trade Organization (WTO)." The department also added, "We will consult with industry stakeholders such as the Australian Industry Association and state governments."

This content was produced with the assistance of AI translation services.