NEWS
CHINA LAUNCHES SECOND PROBE INTO IMPORTED AUSSIE WINES ON ALLEGED SUBSIDIES
By Siulan Law Mathews DipWSET
31-8-2020
Credit: Joey Csunyo/Unsplash
China’s Ministry of Commerce announced today that it is launching an anti-subsidies investigation on imported wines from Australia, two weeks after an anti-dumping probe has been launched.
This second investigation is expected by the Australian wine industry because the Chinese government has informed Australian authorities of its intention of probing alleged subsidies as well two weeks ago.
In a statement issued today, China’s Ministry of Commerce said imported Australian bottled wine in containers holding 2 litres or less will face a one-year countervailing-duties investigation.
The statement said the investigation will last for one year until 31 August 2021, with the potential of being extended until 28 February 2022 under special circumstances.
"The countervailing-duties investigation into Australian wine was broadly foreshadowed at the time that the anti-dumping investigation was initiated," said Australian Trade Minister Simon Birmingham.
"We strongly refute claims that initiatives like the Murray-Darling Basin Economic Development Program or programs that support research and development equate to a subsidy of our wine exports."
"The Government will work with our internationally renowned wine industry to mount the strongest possible case against these claims," added Birmingham.
Data from Wine Australia said the country exported about 62% of its wine productions, China is by far the biggest market by value worth AUD1.1billion (USD790 million).
China is also Australia’s top trade partner, the two countries have been caught in trade tension in recent months over Australian Prime Minister Scott Morrison’s earlier call for an investigation on China on the origin of the coronavirus.
In May, China slapped a punitive 80% tariffs on barley imports from Australia, it then banned beef imports from four large Australian abattoirs citing improper food labelling.
In June, the Chinese government warned citizens about travelling and studying in Australia, saying that there is an increase in racist incidents against Asians amid COVID-19 pandemic.
The dual investigations into imported Australian wines are the latest in the series of strikes from China targeting Australian imports.
(the writer can be contacted at: info@thewinechronicle.com)
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