Australia’s trade minister has rejected the Chinese regime’s claims that Australian winemakers are dumping wine into the Chinese market. He also denied that the threat of tariffs on wine is part of a trade war.
China’s Ministry of Commerce will launch an investigation and is considering placing countervailing duties, or tariffs, on Australian wines.
“Australian wine is by no means subsidised, it is by no means sold at or below anything other than market rates in the world market,” said Birmingham.
A spokesperson for the peak body of the Australian wine industry, Australian Grape and Wine, told The Epoch Times on Aug. 19 that they would “work closely” with producers, the Australian government, and the Chinese regime.
“Our producers have a long and positive relationship with Chinese customers, and it is a strong and high-value market for Australian wine. We hope to continue and build on this relationship in the future,” the spokesperson said.
The Australian wine industry exports an estimated $1.1 billion worth of wine to China every year, making it the largest export market for Australian winemakers.
A product can also be considered “dumped” if an exporter profits from government assistance, thereby allowing the exporter to sell the goods at a lower price.
Trade Minister Denies Australia-China Trade War
Birmingham denied this is another volley in a burgeoning trade war that China is launching against Australia.“Well, Australia is certainly not engaging in any type of war. What we want is a constructive trading relationship, one where we can work together in the areas of mutual interest,” he said in response to a reporter.
Birmingham acknowledged this concern. “I can understand why people would be concerned given the experiences the Australian barley industry has had,” he told reporters.
“All we can do at this time is to support our winemakers, hundreds of them across Australia in terms of making the strongest possible case in their defence to Chinese authorities. That’s what we'll be doing. It will be based on evidence and fact, and we are confident that it will be a compelling one,” said Birmingham.