Australia, China trade war ensures mutual destruction



PERTH – Treasury Wine Estates, the largest wine company listed on the Australian Securities Exchange, said in its recent annual report to shareholders that China’s new anti-dumping measures on Australian wine are a serious concern.

“This matters deeply to our business and the industry, both in Australia and China.”

China recently launched a second investigation into Australian wine imports. Beijing is probing separately what it believes are subsidized wine imports, claiming that Australian wines cost more at home than they do in China.

This may be true, but that’s largely because alcohol is heavily taxed in Australia, despite its reputation for cheap and abundant booze. The Chinese Ministry of Commerce’s investigation will reportedly run between a year to 18 months. 

For its part, the Australian government maintains it does not subsidize wine exports. Australian wine might be selling best by volume and value in China, but it has never been the cheapest; on average Australian bottles cost more than Spanish and South American wines.



READ SOURCE

LEAVE A REPLY

Please enter your comment!
Please enter your name here