China to levy additional anti-subsidy duties on Australian wine

Chinese Ministry of Commerce has reportedly decided to impose additional anti-subsidy duties on imported wine from Australia.

The move follows an investigation by the Chinese ministry, which found that Australia improperly subsidises wine exports, causing substantial damages to the country’s domestic wine industry.

The anti-subsidy duties, which are set to be effective from this week, will be charged at a rate of 6.3%-6.4%. They are expected to last until China concludes its ongoing investigation.

According to a timeline published by Australian Grape & Wine, China’s investigation, which started in August, is expected to last until October next year.

Australian Grape and Wine industry group head Tony Battaglene has been quoted by Bloomberg as saying: “I think that’s pretty good evidence that there’s no significant subsidy in the Australian industry, which is nothing new.

“Obviously, I don’t agree that there’s enough for even that much. In real terms, the additional 6.3%, for that sort of margin on top of the existing tariffs, makes no commercial difference.”

Last month, China imposed a tariff of 107.1% to 212.1% on Australian wine, after a preliminary ruling on the anti-dumping investigation.

At the time, China’s foreign ministry spokesman Zhao Lijian on Friday defended the measures as a legitimate move to protect Chinese winemakers and consumers.

China is considered one of the biggest markets for wine producers in Australia. The Australian Government previously described the tariffs as a breach of the two countries’ free trade agreement.

Earlier in May, China placed anti-subsidy duties on Australian barley, which was also subject to anti-dumping tariffs.

The report suggests that China has also blocked imports of its beef, coal, cotton and timber, and other goods from Australia after the Australian Government expressed support to a probe related to the origin of the Covid-19 pandemic.