The recent tension between China and Australia has escalated the trade dispute between China and Australia by imposing anti-dumping duties on Australian wine. On this occasion, according to the latest news, the US side said the White House will supply Australian wine and China will miss the opportunity.
Image courtesy of: FX168 Financial News Service
China will miss out as White House to supply Australian wine, says NSC
NSC tweeted that Australian wines will be featured at the White House holiday reception this week. Unfortunately, Chinese wine lovers will miss out due to the mandatory tariffs imposed by the Chinese government on Australian wine merchants.
China"s Ministry of Commerce issued a ruling on Australian wine dumping last Thursday (Nov. 27), noting that the findings showed that Australian wine exporters were selling wine below the cost of production and causing significant harm to Chinese wine producers. From November 28, wine imports from Australia will face tariffs ranging from 107.1% to 212.1%.
According to market research firm IBISWorld, Australia's wine production industry generated A$7 billion in revenue in the last financial year, of which A$2.9 billion came from exports. China is a major market for Australian wine, accounting for 36.7 percent of Australian wine export revenue last year.
The Australian government has rejected the preliminary findings. Australian Trade Minister Simon Birmingham said it was wrong to think that Australia was subsidizing its wine industry in order to be able to sell below cost on the international market, calling the findings wrong on both a factual and substantive level.
Birmingham said the anti-dumping duty on wine continues this year's economic pressure campaign that includes restrictions on imports of Australian beef, barley and coal.
Australian Prime Minister Scott Morrison has also publicly stated that China is punishing Australia over political issues, a move that will hurt the lifeline of wine producers.