China will lift anti-dumping and anti-subsidy tariffs on Australian wine from Friday, the Commerce Ministry said, ending three years of punitive levies amid warming ties between the two countries.

The tariffs, of up to 218.4 percent, were first imposed in March 2021 for a period of five years, along with a host of other trade barriers on Australian commodities, when relations soured after Canberra called for a probe into the origins of Covid-19 and barred Huawei from 5G contracts, among other disputes.

Ties have improved significantly since Australia's Labor Party took power in 2022, leading Beijing to steadily lifting trade hurdles on Australian goods, including barley and coal.

"Given the situation in China's wine market has changed, the anti-dumping and anti-subsidy tariffs imposed on wine imported from Australia is no longer necessary," the Commerce Ministry said in a statement.

Spokesman He Yadong described China and Australia as important trading partners for each other.

"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.

The Australian government welcomed the move.

"The re-entry of Australian bottled wine into the Chinese market will benefit both Australian producers and Chinese consumers," Prime Minister Anthony Albanese, Foreign Minister Penny Wong and Trade Minister Don Farrell said in a statement.

"The removal of duties means that Australia will discontinue its legal proceedings at the World Trade Organisation," they said.

The statement added that Canberra would continue to lobby for the remaining trade restrictions to be lifted, which includes rock lobster and beef from some abattoirs. (Agencies)
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Last updated: 2024-03-28 HKT 17:19