Winemakers of Australia have been facing another conflict from China because pressures continue to ramp up between these two nations.
On Friday, Chinese officials declared that they would begin applying heavy taxes on wines, that are coming from Australia, as they found preliminary evidence of dumping.
China will impose taxes on Australian wine of up to 212%, intensifying trade tensions between the two countries https://t.co/oKp9CegBaC
— BBC News (World) (@BBCWorld) November 27, 2020
In a statement, the Ministry of Commerce described that starting Saturday, the country will start provisionally placing heavy duties from 107.1 percent to 212.1 percent Australian wines.
Tight relations between both countries
The action implements now another challenge in front of Australian trading when relations turned worse between Beijing and Canberra.
Beijing declared an-subsidy examination of a few Australian winemakers in August, after a complaint from the CWIA (China Wine Industry Association). Moreover, Chinese regulators at that time described that they would study forty accusations of biased government subsidies in the wine sector of Australia.
Now the Commerce Ministry describes that it has evidence of dumping causing material damage to the Chinese wine industry. However, the impact of the novel measures could be shocking because China is considered as one of the significant importers of Australian wine, according to Wine Australia (a trading firm supported by the Australian government).
The group said that in the previous financial year, which completed this September, central China alone made up thirty-nine percent of the total wine of Australia exports by value.
But this time, Australia made China upset by calling for an examination into the roots of the COVID-19 pandemic. Furthermore, China later pointed Australia over the business, stopping few imports of beef and imposing heavy duties on barley.
Australia efficiently, in August, restricted the trade of daily products to a Chinese firm as an official described the attainment would be conflicting to the national interest.
The wine taxes ramped up just days after both China and Australia came into a major contract known as RCEP (Regional Comprehensive Economic Partnership). Besides this, many experts had proposed that the deal could support the two territories.