Australian leader seeks conciliation in dispute with China

PRI's The World


If you enjoy a glass of wine every now and then. You've likely tried a bottle from australia at some point the. Us is a big market for aussie vintners. So is china but now china shops wanting to carry australian wine face higher costs much higher. The chinese government has announced new taras on australian wine imports as high as a two hundred twelve percent tax on every bottle. It is a major blow to australia's wine industry as the world bank. A hillier reports. China is pointing the finger at australia and says the country is dumping wine into its market causing the chinese wine industry to crash. Australia says that's not true. Still because of the spike and fees the wine trade between the two countries has come to a grinding halt. The level of the tariffs essentially closes a market for experts. Say it will be virtually impossible for steinbeck's orders to send bottle bought into china for the foreseeable future tony lane. Ceo of australian grape and wine says people's livelihoods are already being threatened of the twenty four hundred australian wine producers who export to china eight hundred of them sell exclusively to the people's republic that now the markets that aren't still domestically they've set the businesses up puglia round the toronto market. And now. we're the next older will come. There's a lot of guess uncertainty. In fear and confusion james robson of ross hill. Weinstein is feeling the pressure. This is terrible news. He told abc news australia. That nearly twenty percent of his product exports to china where his customers usually place big orders in october to prepare for chinese new year. And we haven't done any of that this year because obviously that texting right. It's just not sustainable alley entry level one these ten dollars and that's gonna make it thirty. Even the big players in australia's wine industry are taking a hit shares in the largest one treasury. Wine estates plunged eleven percent when the tariffs were announced. But they'll be okay. Tony battling says because they can sell to other countries mainly europe the us and other parts of asia still under thirty five million liters of wine that is now going to be looking for a high finding new markets and forming new business relationships is tough though especially during a global pandemic and battling says those other markets won't be able to make up for the loss of business with china we got hundred seventy markets resulted. Even if i only christ bought fifteen percent that would still live. It's seven hundred million dollars in the red site. Clearly showtime Visit occasion is not going to work. Experts say the wind tariffs are not just about reds and whites relations between australia and china soured earlier. This year after australia called for an investigation into china's handling of the coronavirus pandemic since then china has slapped tariffs and restrictions on a number of australian exports including barley beef seafood and sugar agriculture minister. David little proud told sky news australia. That he's looking for clarification from china. Is that it is retribution. Rather than any specific issue that any whether it be one or the other commodities produced the trade war appears to be here to stay. China's commerce ministry said today the tariffs could last between four and nine months at this point. Tony battling of australian grape and wine says he doesn't see a clear path forward normally you can resolve economic disputes through negotiation. But with you can't get to the table. You can't get both parties in the same room or on the same telephone. You kinda negotiate in the meantime battling hopes australian producers won't have to sell their wines under market value just to keep the lights on

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