After the review last year which resulted in the removal of tariffs on Australian barley imports in China may be applied also for the wine.
Ministry of Commerce of China has released an interim proposal to remove tarrifs on Australian wine, Australia’s top publicly listed winemaker Treasury Wine Estates TWE.AX said on Tuesday.
This raised hope for the end of nearly three years duties.
The duties put in place from late 2020 when China lifted trade barriers on a range of commodities including barley, wine, coal and lobsters.
CEO of TWE, Tim Ford said he is optimistic about the final result. The outcome will come after review finished at the end of March.
“We’re pleased with the intention to remove tariffs on Australian wine into China, as outlined in the China Ministry of Commerce’s interim draft determination,” CEO Tim Ford said.
According to industry publisher Winetitles, TWE was Australia’s biggest wine producer by volume in 2022, also listed on Australian stock exchange.
TWE was after particularly hit by the Chinese tariffs.
The decision to remove tarrifs on Australian wine is the clearest sign yet that China is on the verge of ending the duties, as high as 218%, first imposed in 2021.