A Chinese drinks group has called for retrospective tariffs on Australian wine imports, Australian winemaker Treasury Wine Estates Ltd said yesterday, amid escalating trade and diplomatic tensions between Beijing and Canberra.
Treasury, the world’s largest listed winemaker, said in a filing that it had been notified that the China Alcoholic Drinks Association (CADA) wrote to the Chinese Ministry of Commerce requesting tariffs on Australian wine as part of a previously announced anti-dumping probe.
The request reflects a deepening trade stand-off between the countries, which began a free-trade agreement in 2015, but have since seen the relationship cool as Australia joined a global call for an investigation into the origins of COVID-19.
Photo: Reuters Warning: Excessive consumption of alcohol can damage your health
In the filing, Treasury said that it “will continue to engage proactively with its customers in China to both assess the impact of this request on future import orders and support them in any new process requirements.”
Treasury said that it did not know which products CADA had proposed tariffs for, whether the ministry would apply them retrospectively or what the financial impact could be.
The company makes most of its profit from Asia, where China is one of its main markets.
Amid the souring of relations, the South China Morning Post this week said that China was expected to block imports of sugar, red wine, lobster, barley, coal and copper ore, and concentrates from Australia.
Reduced imports of Australian products were the result of buyers’ decisions, China said.
Australian Minister for Trade, Tourism and Investment Simon Birmingham yesterday invoked the 2015 free-trade agreement, telling local radio that Australian exporters did not engage in dumping — exporting below cost to take market share — and that there was “no reason why our exporters should see any disruption.”
“What I would urge Chinese authorities to do is to make it very clear that the commitments they’ve given to Australia under the China Australia Free Trade Agreement ... will be honored,” he said.
CADA was not immediately available for comment.
China’s blacklist — delivered verbally to commodities traders — includes coal, barley, copper, sugar, timber, wine and lobster.
It does not cover materials, such as iron ore or natural gas, where import curbs could unduly damage China’s own economy.
“The Chinese warned earlier this year that many of the goods that Australia exports were replaceable,” Richard McGregor, a senior fellow at Sydney-based think tank Lowy Institute, said by telephone.
“Now they’re going about replacing them. China seems determined to punish Australia and make it an example to other countries,” McGregor said.
Additional reporting by Bloomberg
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