Another blow to Australia’s export sector.
China has confirmed it will launch an investigation into Australian wines over alleged subsidies.
China is Australia’s most valuable wine export market.
However, China’s Commerce Ministry said Australian bottled wine in containers of 2 liters or less would face a year-long customs duty investigation.
It comes two weeks after the Chinese government launched a separate anti-dumping investigation that caused the share price of Australia’s biggest wine exporter, Treasury Wine Estates, to plummet.
China is Australia’s most lucrative export market – valued at $ 1.3 billion last year.
This figure even exceeds the profit rate over the next nine countries combined.
Earlier in May, China’s Ministry of Commerce announced 80.5 percent tariffs on Australian barley at the end of a year-long anti-dumping investigation.
The move shut down Australia’s export trade to China, even though the Government and the grain industry believe China’s accusations are baseless.
Previously, John Dee, in Queensland, was also banned from exporting to China last week because he was suspected of exporting sirloin containing banned chemicals.
