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- The Chinese Ministry of Commerce has launched an anti-dumping investigation into Australian wine exports in China
- Australian Minister for Agriculture, David Littleproud, says the Australian government will work with the wine industry to fight the claims
- The investigation follows months of tension between Australia and China, along with increased tariffs lumped on Australian barley and beef
- Australian wine company Treasury Wine Estate (TWE) said it will cooperate with any requests for information and will continue to pursue its relationships in the country
The Chinese Ministry of Commerce has launched an anti-dumping investigation into Australian wine exports in China.
The probe will look into wine imported in two-litre or less containers in 2019, as well as any impact on its domestic industry between 2015 and 2016, according to Reuters.
Australian Minister for Agriculture, David Littleproud, has rebutted the allegations of dumping and said the Australian government will work with the industry to fight the claims.
“Our farmers are amongst the most efficient and least subsidised producers in the world – recognised as second only to New Zealand in our levels of support,” the minister said.
“While we respect the right of any nation to defend their domestic producers from unfair and uncompetitive practices, we reject any claim that Australian wine product has been ‘dumped’ into China,” he continued.
“I note that this anti-dumping investigation will run for up to 12 months, and I am committed to working with the Australian wine industry to ensure that all necessary information is provided to refute any claim that Australian wine is being dumped.”
The investigation also follows months of disputes over 5G provider Huawei and a COVID-19 investigation among other matters, which have punctuated the Australia-China relationship and seen Australia’s largest trade partner increase tariffs on barley and beef.
Those industries, much like Australia’s wine industry, are heavily weighted on exports to China. During the 2019 calendar year, wine exports totalled $2.91 million according to Wine Australia, $1.3 billion of which came from sales into China.
Australian wine producer Treasury Wine Estate (TWE) acknowledged the investigation today, stating it will cooperate with any requests for information and will continue to pursue its relationships in the country.
“TWE has had a long and respectful relationship with China over many years through its team, partners, customers and consumers.”
“As an importer of high-quality, premium Australian wine, including brands such as Penfolds, TWE remains committed to China as a priority market and will continue to invest in its Chinese business and its relationships with customers and consumers.”
“TWE’s focus will remain on building premium and luxury brands, investing in the local operating model and team, and working with partners to enhance the wine category and grow our contribution to China.”
Investors have reeled on the news of the investigation, with Treasury Wine Estate’s share price down 13.4 per cent today to $10.69 at 2:30 pm AEST.
Fellow ASX-listed wine company Australian Vintage’s (AVG) shares were down 2.2 per cent to 44 cents at the same time.
