China lifts steep tariffs on Australian wine as ties improve

China said on Thursday it would lift tariffs it imposed on Australian wine three years ago, a sign of improving relations between the two countries.

China’s Ministry of Commerce said the decision would take effect on Friday.

In 2020, China imposed tariffs on Australian wine amid a diplomatic spat over Australia’s support for a global inquiry into the origins of COVID-19. Australian wine tariffs soar to more than 200%.

Australian wine producers have been hit hard by tariffs as China is Australia’s largest wine export destination.

The Australian government welcomed the decision and said in a statement that the tariffs were removed at “a critical time for the Australian wine industry”.

He Yadong, spokesperson of the Ministry of Commerce of China, said that China and Australia are each other’s important trading partners.

We are willing to work with Australia to resolve each other’s concerns through dialogue and consultation and jointly promote the stable and healthy development of bilateral economic and trade relations.

In 2019, before tariffs were implemented, trade was worth A$1.1 billion (US$710 million) annually to the local economy.

Australian Prime Minister Anthony Albanese said trade levels were likely to increase after restrictions were lifted.

“We think trade is about to come back and volumes are going to be higher because we’ve seen that with other products that have recovered,” he said during a visit to a winery in Australia’s Hunter Valley. Wine on Thursday The production area announced the elimination of tariffs.

“China needs quality wine and Australia produces it.”

In 2020, China imposed a series of sanctions on Australian goods at a time when bilateral relations were at their lowest of late. It is estimated that the tariffs cost the Australian economy A$20 billion (US$13 billion).

The trade barriers are widely seen as punishment for Australia’s previous government for passing laws banning covert foreign interference in domestic politics, banning Chinese telecoms giant Huawei from launching 5G networks in Australia over security concerns and calling for an independent inquiry into Australia. COVID-19 pandemic.

China is also angered by Australia’s deepening security relationship with the United States, particularly the AUKUS agreement, which also includes Britain and will provide Australia with submarines powered by American nuclear technology.

As relations between the two countries thaw, most tariffs have been lifted. After the change of Australian government, relations between the two countries have steadily improved, and Albanese visited Beijing last November.

In April, Australia suspended a complaint to the World Trade Organization in a bid to reopen the Chinese market to Australian barley, one of the products targeted by the tariffs, in what was widely seen as an attempt by Australia’s new government to repair relations with China. Beijing.

The Australian government also ended a separate WTO dispute with China over sanctions on Australian wine in exchange for a Chinese review of the tariffs.