The Chinese Government will place tariffs on all Australian wine imports from tomorrow, following the preliminary findings of an anti-dumping investigation.
China’s Ministry of Commerce launched an anti-dumping investigation in August to review whether imported Australian wines were being sold below “fair” prices and hurting China’s wine industry.
Ten wine businesses were named in the investigation, but 31 businesses registered to be a part of the investigation.
The companies were asked to fill in sample questionnaires and from that sample, three companies were selected to take part – Treasury Wine Estates, Casella Family Wines, Australian Swan Limited.
While the investigation is not due to finish until next year, China’s Commerce Ministry has announced that importers of Australian wine entering China will need to pay temporary “anti-dumping security deposits” from November 28.
The deposits will range from 107% to more than 200%.
“This is a very distressing time for many hundreds of Australian wine producers, who have built, in good faith, a sound market in China,” Australia trade minister Simon Birmingham said.
“The Australian government will vigorously defend the industry,” agriculture minister David Littleproud added.
“We have 10 days in which to appeal, and we’ll work closely with the industry around that.“We’re deeply concerned by this. In light of the recent comments by China, it gives the perception this decision is predicated on something other than any wrongdoing by the wine industry.
“Obviously we’ll exhaust all avenues available to us through the [World Trade Organization].”
Shares in Treasury Wine Estates dropped 11% when the news was confirmed, with the company going into a trading halt until Tuesday.