Australian wine industry faces hangover from China's high tariffs

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By Praveen Menon SYDNEY (Reuters) - Australia's wine industry faces severe oversupply problems that will need years to resolve, experts say, pointing ...

STORY CONTINUES BELOW THESE SALTWIRE VIDEOSSYDNEY - Australia's wine industry faces severe oversupply problems that will need years to resolve, experts say, pointing to Chinese tariffs, high production and export bottlenecks during the COVID-19 pandemic.

Ties with biggest trading partner China deteriorated in 2020 after Australia called for an inquiry into the origins of COVID, triggering reprisals by Beijing, such as anti-dumping duties on Australian wine and barley. Diversification into markets such as Britain, Europe, the United States, and elsewhere in Asia would take time to yield results, McLean added.

But even if the tariffs are lifted this year and Chinese wine consumption recovers, Australia’s wine industry will take at least two years to work through the surplus, Piggott said, as the curbs had coincided with an exceptional growing season.

 

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