THE Chinese Government will place up to 200 per cent tariffs on Australian wine, bringing one of Australia’s largest wine producers to a stock exchange trading halt and sending producers scrambling.
Friday’s announcement is the latest development following a months-long spat between Australia and its No.1 trading partner, raising serious concerns for the future of the $2.6 billion export industry.
The tariffs come after a Chinese government ministry raised allegations that Australian exporters had been dumping wine into its market, following an investigation it conducted at the request of the Chinese Alcoholics Drinks Association.
At the announcement, shares in one of Australia’s largest exporters, Treasury Wine Estates, fell more than 13 per cent before being put into a trading halt.
Member for Mallee Anne Webster expressed deep frustration with Australia’s increasingly strained relationship with China.
Dr Webster raised concerns for the region’s farmers, who she said had worked hard to produce top-quality products and secure sustainable export pathways into China.
“Many farmers have expressed their deep concern to me about China’s behaviour and unwanted barriers to trade,” she said.
“This has resulted in a great insecurity about the future of trade with China.”
Dr Webster said she was working with the Commonwealth to secure new trade opportunities for Australian producers.
“I empathise with farmers who have often spent years developing trade relationships with importers but I have had to advise them that diversification of their export routes is wise at this juncture.”
Federal Agriculture Minister David Littleproud said the government was also extremely disappointed in the move and said it was a decision the government would “vigorously fight against”.
“The Australian Government categorically rejects any allegations that our wine producers are dumping products into China and we continue to believe there is no basis or evidence for these claims,” he said.
Mr Littleproud said the government was considering its options but was willing to work with the Chinese authorities to resolve the issue.
