BEIJING (AP) — China on Thursday said it will lift tariffs placed on Australian wine over three years ago, in a sign of improving ties between the two countries.
China’s Ministry of Commerce said the decision will take effect Friday.
China imposed tariffs on Australian wine in 2020 during a diplomatic feud over Australia’s support for a global inquiry into the origins of COVID-19. The duties on Australian wine skyrocketed above 200%.
Australian wine producers took a heavy hit from the tariffs, as China was Australia’s top wine export destination.
The Australian government welcomed the decision, saying in a statement that the tariffs were lifted at a “critical time for the Australian wine industry.”
He Yadong, a spokesperson for China’s Ministry of Commerce, said China and Australia are “each other’s important trade partners.”
“We are willing to work with Australia to resolve each other’s concerns through dialogue and consultation and jointly promote the stable and healthy development of bilateral economic and trade relations,” He said.
Trade tariffs have been a hot topic between Beijing and Canberra in recent years after China imposed a raft of sanctions on Australian goods in 2020 during the most recent nadir in the bilateral relationship. It is estimated that the tariffs cost the Australian economy 20 billion Australian dollars ($13 billion).
Most of the tariffs have since been lifted as the relationship thawed.