China launches second Australian wine inquiry in further threat to winemakers
China has launched a second inquiry into Australian wine just weeks after its an anti-dumping probe, in a further threat to winemakers.
SA News
Don't miss out on the headlines from SA News. Followed categories will be added to My News.
- Fears China may slap 200 per cent import tax on Australian wine
- Want to enjoy a better reading experience? Try our app today
China has launched a second inquiry into Australian wine just weeks after announcing an anti-dumping probe.
China’s Ministry of Commerce officially launched the second inquiry on Monday, which will look at whether Australian winemakers receive government subsidies.
The 12-month probe could potentially see additional import taxes imposed on Australian wines.
Winemakers already fear China could uses its anti-dumping probe to slap import taxes of up to 200 per cent on Australian wines, as The Advertiser reported last week.
South Australia is the most exposed state as the nation’s biggest wine exporter.
The latest inquiry was launched after a complaint from the Wine Industry Association of China, which claimed Australian winemakers have access to 40 government subsidies which allows them to unfairly compete with Chinese wines.
Trade Minister Simon Birmingham flagged that Beijing was likely to announce this second probe when it established the initial anti-dumping inquiry two weeks ago.
“We strongly refute claims that initiatives like the Murray-Darling Basin Economic Development Program or programs that support research and development equate to a subsidy of our wine exports,” Minister Birmingham said today.
“The Government will work with our internationally-renowned wine industry to mount the strongest possible case against these claims.”
Peak industry body Australian Grape & Wine said the sector would fully cooperate throughout the investigation process and was “well placed to respond”.
“China is an important market for Australian wine and our wine is in demand from Chinese consumers,” the group said in a statement.
“Australia has a large number of exporters with close cultural ties to China.
“The Australian industry welcomes the opportunity to build on these ties and work with the Chinese industry and government to further technical cooperation and develop lasting relationships.”
The inquiry will cover bottled wine and will be completed by August 31, 2021, or could be extended until February 28, 2022.