Caixin
Nov 27, 2020 03:33 PM
ECONOMY

Australian Wine Hit by Tariffs in Latest Salvo in China Trade War

(AFR) — Australian winemakers face tariffs of up to 200% after Chinese trade officials ruled producers had been dumping product, in a further escalation of tensions between the two countries.

A notice published by China’s Ministry of Commerce on Friday said Chinese producers had sustained “substantive” damage, as the Australian government vowed to fight the decision.

The Chinese notice suggests winemakers face tariffs of between 107.1% and 212.1%.

Shares in Australia’s biggest winemaker Treasury have dropped more than 11% following news of the tariffs.

The company’s shares have been placed in a trading halt until an announcement by the company on the impact of the measure or the commencement of trading Tuesday, whichever is earlier.

Agriculture Minister David Littleproud said China’s decision was deeply disappointing.

“The fact is Australia produces amongst the least subsidized product in the world and provides the second lowest level of farm subsidies in the OECD,” he said.

“Today’s decision is a seriously concerning development and one which Australia will be vigorously fighting against.

“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.

“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.

“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.”

This article was originally published by the Australian Financial Review

Contact editor Yang Ge (geyang@caixin.com)

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