Treasury Wine story on China By Reuters

(Reuters) – Treasury Wine Estates ( OTC: ), Australia’s top wine producer, published its first annual results since China removed punitive duties on Australian wine imports and forecast a strong fiscal 2025 as it will restore it to its former largest market.

Here’s a timeline of events over the past few years that led to the imposition and subsequent lifting of high tariffs on Australian wine imports into China:

THE WINE FLOWS, THE PROFIT IS GOLDEN

December 2015: The China-Australia Free Trade Agreement (ChAFTA) is implemented to facilitate trade and investment, providing increased market access for Australian beef and wine.

2015-2019: Treasury Wine’s net income triples over the next four years.

January 2019: Chinese import duties on Australian wine drop to zero, giving Australia a 14% tariff advantage over rivals.

August 2019: Treasury Wine posts record annual profit of US$433.80 million ($287.18 million) for fiscal year 2019.

POLITICAL TENSIONS AFFAIRS

April 2020: Australia seeks support for an international inquiry into the origins of the COVID-19 pandemic, prompting a sharp rebuke from China.

August 2020: China’s Ministry of Commerce (MOFCOM) launches an investigation into Australian wine imports.

November 2020: China imposes anti-dumping duties on Australian wine of up to 212.1%, making Australian wine much more expensive for Chinese consumers. Treasury Wine says it will divert hundreds of thousands of cases of wine to other countries to avoid high tariffs.

March 2021: China completes its investigation into Australian wine imports and raises tariffs by up to 218.4% for the next five years.

August 2021: Treasury Wine’s fiscal 2021 result rebounds on strong performance in markets outside China, but remains substantially below 2019’s record.

January 2023: Australia submits a written application to the World Trade Organization (WTO) Dispute Settlement Body challenging the tariffs.

THE UNFREEZING OF RELATIONS

October 2023: China agrees to carry out a rapid review of its wine taxes. Australia agrees to suspend WTO dispute for five months. Treasury Wine shares rise 5%.

March 2024: Chinese Foreign Minister Wang Yi visits Australia and New Zealand. China’s Ministry of Commerce announces that anti-dumping and anti-subsidy duties on Australian wine will be lifted from the end of March. Treasury Wine announces the resumption of distribution of some of its products in China.

May 2024: Treasury Wine’s CEO says the winemaker will build up its workforce and marketing budget in China as it navigates re-entry into what was once its biggest market.

August 2024: Treasury Wine says it is relaunching its Penfolds portfolio in China and seeing strong demand.

($1 = 1.5106 Australian dollars)