China has stopped imports of Australian wine, badly affecting the OZ nation’s billion-dollar wine trade, ABC News reports, citing the Industry group Australian Grape and Wine.
Industry group Australian Grape and Wine Chief Executive Tony Battaglene said: “We know there’s been no official confirmation of a ban.”
“But we have heard that shipments have been subject to increased testing, they are subject to increased scrutiny of documents and it’s definitely slowing any clearance of customs. So, we actually haven’t heard of any shipments that have yet been cleared through the customs,” he added.
This comes as the industry prepares for the possibility that tariffs could be imposed on Australian wine exports to China, as part of an investigation into claims Australian winemakers sold wine below the cost of production and received government subsidies.
AUD/USD’s advance remains capped just shy of the 0.7300, as markets digest the above report amid broad-based US dollar weakness, fuelled by the vaccine progress-led risk-on mood. The ASEAN trade deal also contributed to the pro-risk sentiment alongside encouraging Chinese factory output.
The spot was last seen trading at 0.7283, still up 0.21% on the day.