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BEIJING: China said on Friday (March 26) that it would increase tariffs on Australian wine imports for up to five years as relations between Beijing and Canberra deteriorate.
The levies range from 116.2 percent to 218.4 percent, China’s Commerce Ministry said in a statement, adding that they will take effect from Sunday.
It is the latest salvo in a series of economic sanctions or disruptions on Australian products, from barley to charcoal, to China’s vast market.
READ: China tightens restrictions on Australian exports
Diplomatic relations with Canberra have reached their lowest level since the deadly crackdown on Tiananmen Square in 1989.
Many in Canberra see the actions as a punishment by Beijing for Australia to reject China’s influence by rejecting investment in sensitive areas and publicly calling for an investigation into the origins of the coronavirus.
In December, Australia asked the World Trade Organization to investigate Chinese tariffs on barley imports, the first time it has taken legal action against Beijing at the WTO over what some have called a “shadow trade war.”
On Friday, China’s Commerce Ministry said an investigation found there was “dumping and subsidies of imported wines” from Australia, adding that the Chinese domestic industry “suffered material damage.”
READ: Comment – Why China is turning sour on Australian wines
Wine exports to China reached a record A $ 1.3 billion (US $ 900 million) in 2019, according to Australian government data, making it the largest market by product value.
China’s wine industry has complained that Australian wines benefit from government subsidies that give them an advantage over Chinese products, the Commerce Ministry said in August when it launched its investigation.
