China’s Ministry of Commerce mentioned Tuesday it is launching an anti-dumping investigation into some wines imported from Australia.
Australia’s Federal Trade Minister Simon Birmingham reported in a assertion that Chinese authorities “have also advised Australia that they are contemplating a ask for to start a countervailing duties investigation.”
“This is a incredibly disappointing and perplexing growth,” Birmingham stated, adding that “Australian wine is not bought at below industry selling prices and exports are not subsidised.”
The announcement comes amid rising geopolitical tensions in between the two international locations. China is Australia’s top rated export sector, and by considerably the greatest spot for the island continent’s wine exports by value, in accordance to the government’s sector authority, Wine Australia.
The Chinese investigation targets “wines in containers keeping 2 liters or a lot less,” according to an English translation on the Commerce Ministry web page.
A normal bottle of wine is about .75 liters.
The anti-dumping probe follows a ask for in early July from the China Alcoholic Drinks Association, the Chinese Ministry of Commerce explained in a separate on the net statement Tuesday. The inquiry will look into possible dumping through 2019, and field damages for the yrs 2015 to 2019, the statement explained.
The investigation will final for a single year — until finally August 18, 2021 — with the potential of becoming extended until February 18, 2022, below distinctive situations, in accordance to the ministry.
Australia had the biggest share of China’s imported wine market place at 37%, in accordance to knowledge for the 12 months by means of May perhaps from International Trade Atlas and cited by Wine Australia in an August 4 report.
France was next at 27%, followed by Chile at 13%, the report claimed.
Shares of Australian wine large drop
Buying and selling in shares of Australia’s greatest wine company Treasury Wine Estates was briefly halted pending an announcement, in accordance to a assertion on the Australian Inventory Trade web page. The shares tumbled additional than 13% in Tuesday trading.
Treasury Wine Estates afterwards said in a assertion released by the Australian Inventory Trade that the firm will cooperate with any requests for information from Chinese or Australian authorities. The corporation additional it will continue to be focused on making its premium and luxury manufacturers, and commonly doing the job to improve its contribution to China.
It was not promptly very clear whether Treasury Wine Estates is section of the Chinese probe.
Australia exported 62% of its wine created in the 12 months through the conclusion of June, in accordance to Wine Australia’s report.
Mainland China was by significantly the largest sector by benefit, with exports growing .7% to 1.1 billion Australian pounds ($790 million), the report explained, noting growth in exports at higher selling prices and a drop at the decreased-close of the industry.
Wine Australia referred a CNBC request for comment to the countrywide marketplace affiliation Australian Grape and Wine.
The group claimed in a assertion that: “We believe that that the Australian grape and wine sector is nicely placed to react to this investigation and Australian Grape & Wine and our exporting firms will cooperate completely.”
“The Australian industry welcomes the opportunity to construct on these ties and get the job done with the Chinese field and government to even further technical cooperation and establish lasting associations,” the affiliation reported.
— CNBC’s Will Koulouris contributed to this report.