China signaled possible progress on resolving a dispute with Australia on punitive wine tariffs as relations between the trading partners continues to thaw. Penfolds-maker Treasury Wine Estates Ltd. surged.
(Bloomberg) — China signaled possible progress on resolving a dispute with Australia on punitive wine tariffs as relations between the trading partners continues to thaw. Penfolds-maker Treasury Wine Estates Ltd. surged.
Beijing and Canberra have agreed to engage with each other over the tariffs, Chinese Ambassador Xiao Qian told reporters after an event on Wednesday. The levies, some as high as 200%, were imposed in 2020 and Australia has taken China to the World Trade Organization over the measures.
“We’re in that process, and we expect there will be more positive outcomes in the coming likely weeks or months,” Xiao said after the event in Canberra.
There’s been an improvement in relations with China since the election of the center-left Labor government in May 2022. Australian coal and timber have been allowed back into the Chinese market, while Beijing announced in August it would be ending tariffs imposed on barley exports.
Treasury Wine Estates rallied the most since February 2022 following the news, closing 5% higher at A$12.23 a share. In August, Treasury said cheaper bottles of its Penfolds brand priced in the A$30 to A$40 ($19 to $25) range could reach China’s shores as soon as six weeks after the end of tariffs.
Australian Trade Minister Don Farrell also announced on Wednesday that he would be heading to China for further meetings in early November. Prime Minister Anthony Albanese is expected to visit Beijing before the end of the year, however no specific date has been set yet.
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