The Penfolds brand owner saw its top-line take a hammering when China hit exports of wine from Australia with 220% tariffs three years ago. Following October’s announcement of a review of the situation by China’s Ministry of Commerce, Treasury said today that the ministry has issued an “interim draft determination” on its findings.
The draft proposes the removal of the tariffs with a formal decision expected “in the coming weeks”.
“We’re pleased with the intention to remove tariffs on Australian wine into China, as outlined in the … interim draft determination,” said CEO Tim Ford. “This is subject to change, however we’re optimistic that the final determination will be a positive outcome for the Australian wine industry.”
European Union-based producers of brandy and, by definition, cognac are hoping they will not suffer a similar fate: At the start of this year, MOFCOM commenced an investigation into allegations of dumping practices. Expected to run for at least six months, the review has been linked to “a trade disagreement between the EU and China … unrelated to our activity”, the Bureau National Interprofessionnel du Cognac said at the time.
