China wine tariffs hit Australian exporters ahead of Lunar New Year

Australia’s wine industry is warning of a “serious impact” from China’s latest tariff hit, and it couldn’t come at a worse time of year for the $1.3 billion trade.

Bad taste: Australia’s wine industry will feel a “serious impact” from China’s latest tariff hit.

CHINA has hit Australian wine with punishing interim tariffs ahead of what should be the $1.3 billion export trade’s peak period.

China Ministry of Commerce confirmed this afternoon it will impose duties between 107.1 per cent to 212.1 per cent from tomorrow, while an anti-dumping investigation is underway.

The tariffs come as industry would traditionally be shipping product to China in time for Lunar New Year; trade at this time of year typically accounts for about 40 per cent of total exports to the country.

“This will be a serious impact, there will be a lot less wine going into China,” Australian Grape and Wine chief executive Tony Battaglene said.

Wine exports to China have already slowed significantly since reports of an unofficial ban of seven commodities, including wine, emerged.

“I don’t know of any container that has got through in the last two weeks,” Mr Battaglene said.

The tariffs come after another tumultuous week in two countries’ diplomatic relationship, after China aired a detailed list of grievances against Australia.

As the relationship has worsened this year, Australian agricultural exports including barley, beef and cotton have been in the firing line.

China accused Australia of flooding its market with cheap wine in August this year, sparking a 12-18 month investigation.

The industry had been hoping to dodge interim tariffs – which China can impose at any stage during the investigation – but those concerns have now been realised.

Under the tariffs, exporters must pay a deposit between 107.1 per cent and 212.1 per cent if they wish send product.

If the investigation ultimately returns a finding of that dumping did not occur, those deposits are returned.

Federal Agriculture Minister David Littleproud said the decision was “seriously concerning” and that Australia would “vigorously fight” it.

“We will continue to work with our wine industry and Chinese authorities as part of the ongoing dumping investigation, but we will of course consider all our options moving forward,” Mr Littleproud said.

Mr Battaglene said industry would be lodging its response in the next 10 days, and would continue to argue there was no dumping.

“Every one is trying for every other market around the world, and I expect people will redouble those efforts,” he said.

Meanwhile one of the industry’s biggest exporters Treasury Wines entered a trading halt earlier this afternoon as shares plummeted 11 per cent, following reports of the tariffs.