Australian winemakers have been buoyed by the news that the Federal Government has reached an agreement with China to resolve the barley dispute.
Treasury Wine Estates shares rose 56 cents to $13.70 today.
“The winemaker welcomed the barley review, saying it looked forward to a stronger relationship between the two countries,” The Advertiser reported.
Foreign Minister Penny Wong said in Adelaide that if the agreement was successful in lifting the barley tariffs, then Australia hoped to follow a “similar process” to reverse tariffs on Australian wine.
“Obviously, stabilisation and the resolution of trade issues will take time, but we are pleased that constructive dialogue has resumed,” Penny Wong said.
She said Australia reserves the right to resume its WTO action if tariffs are not lifted within the next three months.
Trade Minister Don Farrell – who owns a winery in Clare – said Australia’s preferred method of resolving trade disputes was to “discuss and negotiate” with trading partners.
“And, on this occasion, we have sought dialogue with our Chinese counterparts to see if there’s any possibility of resolving these impediments through sensible dialogue,” he said.
Australia is also taking China to the WTO over the wine tariffs of up to 220 percent.
The China tariffs, introduced in November 2020, have cost Australia more than $1 billion in exports.
It has led to an oversupply of red winegrapes in various regions including the Riverland and the Barossa.
Australia is now madly searching for new markets, but progress has been slow.
Rumours have been circulating in the wine industry for several months now that the wine tariffs will be lifted.
Photograph: Zhang Kaiyv, Unsplashed.