China Wine Dispute ‘Highly’ Will Follow Barley to WTO | Weekly farm
AUSTRALIA is almost certain to challenge China’s wine tariffs with the World Trade Organization, the trade minister said as the government is in the process of preparing its legal case.
the australian the wine industry is still struggling to recover after the Asian superpower imposed a five-year tariff of more than 200% on Australian winegrowers, accusing them of dumping wine into China, thus shutting down the market.
Trade Minister Dan Tehan said it was “very likely” that the federal government would decide to take the case to the WTO for an independent verdict.
“We will make a decision on this in the coming weeks,” Tehan said.
“We make sure it’s a solid legal case, because if you’re going to face these disputes, you need to make sure you do your best to win them.
“We are now looking to dot the i’s and cross the t’s. [of the legal case]. “
Wine Grape of SA chairman and Barossa Valley winemaker Adrian Hoffman said the impact of Chinese tariffs varied from vineyard to vineyard.
“Companies that had a very small footprint in China were able to diversify quickly, they made additional sales in the domestic and overseas market,” Hoffman said.
“I know a few Barossa wineries that were 95% in China, and it absolutely wiped them out. It’s going to hurt them badly.”
Some exporters have managed to circumvent tariffs, which were placed on imports of two liters or less, with oversized packaging.
“Customers came to us and said ‘we’re using it for functions anyway, can you put it in three-liter bottles,’ Hoffman said.
“People in China weren’t told why Australian wines came out of the market. They just know what they like, and if they really like something in particular, they will find ways around it. “
Mr Tehan said there had been some market diversification with wine exports to the UK increasing by 33% which could increase further once the current free trade agreement is signed.
Australia already has started a dispute against China with the WTO on barley sanctions, which more than a dozen countries have registered as third parties.
“My strong belief since taking on this portfolio is that we must continue to take a principled approach to trade policy,” said Mr. Tehan.
“We have no other option. If we don’t take a principled political approach, then other countries will be less likely to do it and ultimately it will hurt us more than other economic powers. . “
The story China wine dispute ‘highly’ to follow barley at WTO first appeared on Online farm.