China puts tariffs on Australian wine

27 Novembre, 2020, 06:32 | Auteur: Auguste Feret

China will impose temporary anti-dumping measures on wine imported from Australia from November 28, the Ministry of Commerce said on Friday, in a move likely to further escalate trade and diplomatic tensions between Beijing and Canberra.

Importers bringing in investigated products will need to pay deposits to China's customs authority, which will be calculated based on different rates the authority has assigned to various companies, according to the statement.

On Friday, the Ministry of Commerce said it was taking the temporary measure in response to "substantive harm caused to the relevant domestic wine industry".

China frequently leverages its huge market in diplomatic disputes, cutting off or limiting access when angered.

China in August began an anti-dumping probe into imports of Australian wine at the request of the Chinese Alcoholic Drinks Association.

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Shares in Treasury Wine Estates Limited - which owns the popular Penfolds brands - sank more than 11 percent on the news before trade was halted.

China is the top market for Australian wine exports and is also Australia's largest trading partner, with two-way trade worth A$235 billion ($170 billion) previous year.

Beijing has produced a laundry list of complaints about Australian policies - from banning Huawei's participation in 5G to its call for an investigation into the origins of the coronavirus pandemic.

A Chinese official gave a dossier to Australian media containing 14 grievances earlier this month, reportedly telling the outlets "If you make China the enemy, China will be the enemy".

The tariff announcement comes amid souring trading relations that have seen China impose import tariffs on Australian barley.

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