In the final round of operations in the wake of growing diplomatic tensions between Beijing and Canberra, Beijing has announced that tomorrow (03.28.2021) Australian wine imports will be subject to new compensation tariffs ranging from 116.2% to 218.4%.

Dumping, in which China blames Australia for having to sell overseas at a lower price than is currently practiced in the domestic market.

The response to the Chinese tariff move was immediate, with Australian Trade Minister Dan Tehan threatening to appeal to the World Trade Organization (WTO) for new unjustified tariffs imposed by China on Australian wine.

With these new rates, Tehan assured that it would be “practically impossible” for Australian wines to compete in the Chinese market. “This move by the Chinese government is particularly disappointing and completely unjustified,” he told reporters in Melbourne. “We are going to explore the next steps, which means taking the case to the World Trade Organization.”

Diplomatic relations between the two countries are at their worst since the bloody repression of the 1989 Tiananmen Square protests. Many see the ban as a response to Australia’s blockade of Chinese investment in key sectors and a public appeal for an independent inquiry into the origin of the corona virus. Australian Prime Minister Scott Morrison has accused Beijing of using tariffs as a “retaliatory” measure.

The most important market for this product is Australian wine exports to China, reaching $ 1.3 billion ($ 900 million) in 2019, according to Australian government data.

mn (AFP, DPA)