Beijing appears to be just weeks away from removing tariffs that have crippled Australia’s wine industry since 2020, with an interim decision by China’s authorities reporting that the duties are no longer necessary.

The tariffs of up to 220 per cent applied to bottled wine and severed the market’s value from $1.2 billion at its peak just before the tariffs were introduced, to about $10 million last year.

Last October, Beijing agreed to a review of the tariffs that were first applied to wine at the height of China’s diplomatic freeze, as the superpower accused Australia of anti-competitive behaviour.

The review came after the former Coalition government referred the tariffs to the World Trade Organization (WTO) in late 2021, a dispute the Labor government has said would continue if the review does not lead to the removal of the tariffs.

On Tuesday night, Trade Minister Don Farrell said: “The interim recommendation to remove tariffs on Australian wine is a welcome development.

“It vindicates the government’s preferred approach of resolving trade issues through dialogue rather than disputation.”

Government to continue pressing to lift trade bans

In a similar process, that involved suspending a complaint at the WTO, China removed hefty tariffs on Australian barley last year and that trade has since resumed.

Coal and cotton exports have also resumed, after blockages linked to the diplomatic tension.

However, high-value red meat exports from a number of Australian meatworks, and the $700 million rock lobster trade were banned from deals with China.

In a statement on Tuesday night, Foreign Minister Penny Wong said the government would “continue to press for all remaining trade impediments to be removed”.