World News – AU – China hits 169pc inches on imports from Treasury Wine Estates, including Penfolds, Wolf Blass, Lindeman’s

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Scott Morrison urges the Chinese government to delete a « disgusting » tweet attacking the Australian armed forces

Australia’s largest wine company, Treasury Wine Estates, says its imports to China have dropped by a massive 169. 3 percent tariff, and immediate measures are implemented to minimize the damage.

Trade relations between Australia and China deteriorated further late last week after Beijing imposed crippling import taxes of between 107 and 200 percent on every Australian wine.

The move follows preliminary results of a Chinese anti-dumping investigation that alleged Australian winemakers were selling wine below production cost and causing « significant damage » to China’s winemakers. .

Treasury Wine Estates anticipated « extremely limited » demand for wine in China.

The tariffs or so-called « anti-dumping securities » are billed to Chinese importers who order the Treasury’s wines in bottles of 2 liters or less.

A panic sell-off caused the Treasury’s share price to decline (-11. 3pc) on Friday the company forced its shares on a trading freeze.

Its shares are now trading again, and at 11:45 a.m. on Monday, AEDT was down another 5. 9 percent to $ 8. 69.

In broader context, the coronavirus sell-off and deterioration in relations between Australia and China have seen the Treasury Department’s share price fall more than half since late January (when its shares were worth $ 17). 80).

The winemaker, known for its brands Penfolds, Wolf Blass, Lindeman’s and many others, said the Chinese market made 30 percent of its profits and two-thirds of its sales to Asia in the past fiscal year.

As trade and political tensions ease, speculation is stirring up about what is really going on between the two nations – and what is next on a Chinese « hit list » for sanctions. .

Within this sum, the Treasury Department’s luxury wine and « massive » wine (mass prestige) account for 91 percent of this revenue and 63 percent of the volume.

« We are extremely disappointed to find our business, the businesses of our partners and the Australian wine industry in this position, » Managing Director Tim Ford said in a statement to ASX.

« We will continue to work with MOFCOM (China’s Ministry of Commerce) as the investigation continues to ensure our position is understood.

« However, there is no doubt that this will have a significant impact on many in the industry, cost jobs, and damage regional communities and economies that are the lifeblood of the wine sector. « 

As part of the Treasury Department’s emergency measures, the Penfolds Bin and Icons areas will be « redistributed » from China to other luxury growth markets with « unsatisfied demand ». .

The winemaker will also spend more on sales and marketing to increase demand in these regions and expand their sales base there.

Treasury will also endeavor to cut costs and redistribute its luxury grapes to other brands such as Wynns, Wolf Blass, Seppelt and Pepperjack, which it claims have been « severely restricted » in recent years. .

According to China’s anti-dumping regulations, the initial tariffs are valid for up to four months (until 28. March 2021) and can under « special circumstances » for nine months (28. August 2021). .

This service may contain material from Agence France-Presse (AFP), APTN, Reuters, AAP, CNN and the BBC World Service that is copyrighted and cannot be reproduced.

AEST = Australian Eastern Standard Time, 10 hours before GMT (Greenwich Mean Time)

China, Australia, Scott Morrison

World news – AU – China slams 169 percent tariff on imports from Treasury Wine Estates, including Penfolds, Wolf Blass, Lindeman’s

Ref: https://www.abc.net.au

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