Australia’s winemakers may be hoping in vain China drops anti-dumping case as it did with the EU
- China’s Ministry of Commerce said that it had started an investigation into inexpensive Australian wines allegedly being sold in China below fair market prices
- China buys nearly 40 per cent of Australia’s wine production worth A$1 billion (US$723 million) a year
While Australia’s wine industry hopes that China will drop its anti-dumping probe into Australian imports as it did with an investigation into European products several years ago, such an outcome is less likely amid a more charged international trade environment and with much less bargaining power, according to international trade experts.
The investigation, which could lead to penalties against certain Australian wine imports, is the latest strain on the bilateral relationship.
Australian winemakers warned that any Chinese penalties on their imports – which account for nearly 40 per cent of its production worth A$1 billion (US$723 million) a year, according to research group IBISWorld – would effectively “close the market” to many of their products.
We also know their domestic wine industry has been struggling for the past three years, so these are very normal protectionist measures. At the moment we are not despairing
“It’s not the first time they have done this, so we weren’t very surprised,” said chief executive Tony Battaglene from industry group, Australian Grape & Wine, which will represent Australian interests during the investigation.
