China launches second probe into Australian wine imports
01 September, 2020
China on Monday (Aug 31) launched a study into alleged government subsidies of some Australian wine imports, a widely expected follow-up to an anti-dumping probe that Australian representatives said they would oppose.
The investigations come against a backdrop of increasing tensions between the two countries after Canberra called for an international inquiry into the origins of the novel coronavirus, that was first detected in China's central city of Wuhan.
Beijing imposed tariffs on Australian barley in-may following accusations the grain had been exported baffled, or "dumped". It then suspended some beef imports, prior to starting a study into dumping of Australian wine, an accusation Australia has refuted.
China's commerce ministry said within an online statement it could now investigate 37 Australian wine subsidy schemes carrying out a request from the China Wine Industry Association.
The second investigation, which would take up to year, would consider Australian support measures including "farm risk management", a "farm financing loan scheme" and "business growth funding projects", the commerce ministry said.
Australian Trade Minister Simon Birmingham said the second wine probe have been "broadly foreshadowed" when the initial anti-dumping investigation was initiated.
"We strongly refute claims that initiatives just like the Murray-Darling Basin Economic Development Program, or programs that support research and development mean a subsidy of our wine exports," Birmingham said in a statement, discussing a scheme where the government buys water to enhance the health of key waterways.
"The government will continue to work with this internationally renowned wine industry to mount the strongest possible case against these claims," he added.
Shares of Australia's biggest winemaker, Treasury Wine Estates, were trading flat on Monday afternoon, good broader market, although the shares are down a quarter since China announced the anti-dumping probe.
China may be the top market for Australian wine exports and can be Australia's greatest trading partner, with two-way trade worth A$235 billion (US$170 billion) this past year.
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