As of March 29th 2024, China’s Commerce Ministry has abolished heavy tariffs, including anti-dumping and countervailing duties, on Australian wine.

Tumultuous Tariffs

Bilateral relations became further strained between China and Australia, when the former imposed trade barriers on Australian wine amounting up to $20 billion from 2020-21. This decision worsened the already ongoing China-Australian trade conflict, as other imports such as barley faced heavy tariffs, alongside products such as lobster and cotton being blocked sequentially.

This was a notably detrimental measure for Australia’s wine industry, having previously witnessed wine exports to China peak at $1.1 billion in 20190-2020. China’s consumption of wine also dropped exponentially, and is unlikely to return to its peak levels; even despite the recent scrapping of tariffs.

Looking Toward the Future

This recent shift in market dynamics should elicit a positive development for the industry, benefiting both Australian producers and Chinese consumers. Diplomatic relations between China and Australia are also expected to improve following this change.