Anthony Albanese to visit China, the first Australian Prime Minister to do so in seven years

Australia is “confident” an end to the bitter trade dispute with China over wine is within sight as Anthony Albanese confirms he will travel to Beijing to meet with President Xi Jinping.

Australia is “confident” an end to the bitter trade dispute with China over wine is within sight as Anthony Albanese confirms he will travel to Beijing to meet with President Xi Jinping.

It will be the first time an Australian Prime Minister has visited China in seven years in what is a major breakthrough in the relationship after years of trade blocks, diplomatic and security tensions.

Mr Albanese said it was in the interests of both countries that relations “stabilise,” describing the imminent end to China’s crippling tariffs on Australian wine as a “win-win”.

“Australia gets to export our wine, and importantly China gets to receive this amazing product,” he said.

Australian wine exports to China were hit with tariffs of up to 220 per cent in 2020, decimating a market that at its peak was worth about $1.2 billion.

China is set to enjoy Australian wine again. Photo: Aaron Francis / The Australian

The end of the wine dispute is likely to follow the same pattern as the barley trade block early this year, with Australia agreeing to suspend its World Trade Organisation action against China to allow for Beijing to conduct a rapid five-month review of the tariffs.

In what is widely considered a face-saving exercise for the Chinese Government, it will then have an opportunity to remove the import taxes on wine without suffering the embarrassment of a negative WTO ruling against them.

If China does not remove the tariffs at the end of the review, Australia would resume its actions in the WTO.

Wine was one of the last sectors impacted by trade blocks on some $20 billion worth of Australian exports imposed by China more than three years ago.

Mr Albanese said he was “very confident” wine trade would resume after the review.

“This is a very significant decision, because unlike some of the other products, the wine industry have indicated they were having difficulty finding other markets to fill the gap that was created by the breakdown in the trade with China,” he said.

Anthony Albanese will fly out next month. Picture: NCA NewsWire / Martin Ollman

Mr Albanese will travel to Beijing and Shanghai between November 4 and 7, where he will meet with Mr Xi to discuss a range of issues including climate change, economic and people links.

Coalition foreign affairs spokesman Simon Birmingham welcomed the progress on wine, but said the tariffs should “never” have been imposed.

“It was an attempt at economic coercion by China,” he said.

“The tariffs were never justified.

“And it is no doubt, no coincidence that China and Australia received the draft report from the World Trade Organisation into Australia’s appeal against these tariffs only in the last week.

“I am confident that draft report would have found that these tariffs were an act against the rules of the WTO.”

Mr Birmingham said the tariffs were “clearly” in breach of the China-Australia Free Trade Agreement, and rather than be reviewed they should be “removed forthwith”.

‘Important step’: Albanese confirms China visit

Anthony Albanese will become the first Prime Minister in seven years to visit China as the end of Beijing’s tariffs on Australian wine is within sight.

Mr Albanese will travel to Beijing to meet with President Xi Jinping and Premier Li Qiang from November 4 to 7, in what is a major breakthrough in the relationship after years of trade blocks, diplomatic and military tension.

Mr Albanese will attend the China International Import Expo, as well as discuss trade, community, cultural and business links between the two countries.

China is Australia’s largest trading partner, amounting to almost a third of the nation’s total trade.

The government has been working to remove impediments to trade on produce including barley, wine, lobster, timber and coal

The Prime Minister, Anthony Albanese will fly to China to meet Chinese President Xi Jinping and Premier Li Qiang Picture: NCA NewsWire / Martin Ollman

Since the successful removal of duties on Australian barley, the government has sought to secure a similar process to resolve a World Trade Organisation wine dispute with China.

The government has now reached an agreement with China to move forward to resolve the wine issue, with a review process expected to take five months.

Australia and China have agreed to suspend the dispute on wine in the WTO pending the outcome of the review.

Chinese President Xi Jinping will meet with Anthony Albanese. Picture: AFP

It will be the Prime Minister’s first visit to China and the first visit to China by an Australian Prime Minister since 2016.

It will mark the 50th anniversary of the first visit to China by an Australian Prime Minister, Gough Whitlam, in 1973.

Mr Albanese said he was looking forward to visiting China as “an important step towards ensuring a stable and productive relationship”.

“I look forward to further engaging with President Xi and Premier Li in Australia’s national interest,” he said.

“Prime Minister Whitlam’s historic visit laid the groundwork for the diplomatic, economic and cultural ties that continue to benefit our countries today.

“I welcome the progress we have made to return Australian products, including Australian wine, to the Chinese market. Strong trade benefits both countries.”