THE announcement of a China-led investigation into Australian wine imports has added uncertainty to an industry already trying to recover from the effects of COVID-19.

Last week China’s Ministry of Commerce announced an investigation into allegations Australia was ‘dumping’ wine into its country, at an unfair advantage to their domestic producers and sellers.

The accusation has been strongly refuted by Australian Prime Minister Scott Morrison but has left an industry – which sells one third of its whole export market to China – concerned about any future sanctions, such as duty tariffs.

Schield Estate Wines chief executive Sue Henderson said the investigation is another worry for the local industry, which has already had to deal with loss of income due to the COVID-19 pandemic.

“We want to keep our people employed locally and we want our region to prosper and COVID-19 is enough of a difficulty without having an extra concern,” she said.

“However we make great quality wine at really good value and I’m certain our industry will be very competitive and very successful and be able to get through this issue.”

While Schield Estate exports a portion of its wine to China, she said the business is fortunate to be in a position to rebuild sales in other areas if there was a decline in that market.

“I think we have a benefit that our business has well developed markets globally,” she said.

“However on an industry basis it’s going to have a significant impact if duties are applied.”

The Australian Grape and Wine Association has said the Australian grape and wine sector is well placed to respond to the investigation, with its exporting companies prepared to cooperate fully.

Wine is the third and latest Australian industry to hit by China this year, with beef and barley exports already facing trade sanctions.

Last year Australian wine exports to China were valued at $1.25 billion.