China’s Ministry of Commerce has released an interim proposal to remove tariffs on Australian wine, Australia’s top publicly listed winemaker Treasury Wine Estates (TWE) said on Tuesday (Mar 12), raising hope that nearly three years of duties would soon end.

While the winemaker flagged a final decision on the tariffs was still weeks away and subject to change, CEO Tim Ford said he was optimistic about the final result.

“We’re pleased with the intention to remove tariffs on Australian wine into China, as outlined in the China Ministry of Commerce’s interim draft determination,” he said in a statement.

The decision is the clearest sign yet that China is on the verge of ending the duties, as high as 218 per cent, first imposed in 2021.

TWE was Australia’s biggest wine producer by volume as of 2022 according to industry publisher Winetitles, and is listed on the Australian stock exchange. It was particularly hard hit by the Chinese tariffs.

China has been steadily lifting trade barriers put in place from late 2020 on a range of commodities including barley, wine, coal and lobsters. The restrictions were part of an escalating spat over foreign investment and security that boiled over when Australia called for an inquiry into the origins of Covid-19.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

Australia agreed in October to suspend a World Trade Organisation (WTO) dispute over the wine tariffs while China conducted the review, but has threatened to restart it if the duties aren’t removed.

After a similar review last year, China removed tariffs on Australian barley imports.

Trade Minister Don Farrell said on Tuesday the decision was a welcome development. Over the weekend, he said he was hopeful of a positive outcome when the review finished at the end of March.

China’s Ministry of Commerce did not immediately respond to a request for comment. REUTERS