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Revealed: China’s full complaint over Australian wine

The Chinese government has added Peronod Ricard to the list of wine makers under attack from its Ministry of Finance and Commerce | FULL LIST

China has imposed tariffs on more than $1.2bn of wine exports and told the Morrison government to ­“reflect upon its own behaviour” in a dramatic escalation of trade tensions.
China has imposed tariffs on more than $1.2bn of wine exports and told the Morrison government to ­“reflect upon its own behaviour” in a dramatic escalation of trade tensions.

The Chinese government has added Peronod Ricard to the list of wine makers under attack from its Ministry of Finance and Commerce.

China has imposed tariffs on more than $1.2bn of wine exports and told the Morrison government to ­“reflect upon its own behaviour” in a dramatic escalation of trade tensions.

The list of subsidies named in the complaints against the Australian wine industry are listed in full here to show the extent of the research completed by the Chinese government.

Many of the programs would be disputed by the Australian industry but they also show that while Australian farmers claim to be clean skins in trade battles they are not without their own alleged sins.

The programs below are all state and federal government initiatives to help the wine industry.

Once the investigation is complete the subsidies will be applied to all Australian exports to China.

In its report, the Chinese aganecy MOFCOM said its dumping investigation was conducted throughout 2019 and the injury investigation lasted from January 2015 until December 2019.

Australia accounts for 40 per cent of imported wine into China followed by France at 30 per cent and then Italy.

The four wine makers who are required to provide evidence are TWE makers of Penfolds, Casella, Australian Swan Vintage and Pernod Ricard.

The list includes:

Projects of the Australian federal government:

1. Wine Balance Tax Project

2. Support package for export and regional wine

3. Regional plan

4. Wine tourism and wine cellar ticket funding project

5. Manage farm risk projects

6. National Land Conservation Project

7. Accelerate commercialisation projects

8. Innovative Connection Project

9. Export market development funding projects

10. Research and development tax incentive projects

11. Business Growth Funding Project

12. Sustainable Rural Water and Infrastructure Projects

13. Federal Agricultural Efficient Irrigation Promotion Project

14. Three-year tax deduction project for water supply facilities of primary producers

15. Drought concessional loan program

16. Farm Finance Concession Loan Program

Australian local government projects:

17. Victorian Agricultural Energy Investment Plan

18. Victorian Regional Employment Fund Project

19. Victorian Food Resources Funding Project

20. Victorian regional buyer attraction project

21. Capital Territory Commercial Energy and Water Project

22. TechVouchers Project in New South Wales

23. Tasmania’s advanced manufacturing innovation and growth coupon system

24. Western Australia Innovation Coupon Program

25. South Australia State Export Acceleration Funding Project

26. South Australia Resource Productivity Assessment Project

27. South Australia Regional Food Incentive Program

28. Brand Support Project in Key Regions of South Australia

29. Vineyard and Orchard Expansion Project in Tasmania

30. South Australia River Valley Region Sustainable Development Fund Project

31. Murray River Sustainable Development Plan, South Australia

32. NVIRP 2 Farm Project in Victoria

33. Victorian Farm Productivity Improvement Grant Project

34. Victorian Agricultural Infrastructure and Employment Fund Project

35. New South Wales and Queensland Drought Recovery Preferential Loan Scheme

36. More efficient irrigation support projects in Tasmania

37. Tasmania Agricultural Development Concessional Loan Program

The subsidies alleged by the following applicants will not be investigated:

1. Australian PhD Research Internship Program

2. Agriculture Promotion and Relief Project

3. Interest rate subsidies under special circumstances

John Durie
John DurieColumnist

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Original URL: https://www.theaustralian.com.au/business/revealed-chinas-full-complaint-over-australian-wine/news-story/dd471df5292b07b9031cc27136d2b7c3