US imposes anti-dumping duties on glass wine bottles

By James Bayley

Published: 12 August, 2024

The US Department of Commerce (DOC) has announced preliminary anti-dumping duties on glass wine bottles from China, Chile and Mexico, with some duties reaching as high as 218.15%.

The decision follows an investigation into allegations that these countries are selling wine bottles in the US at unfairly low prices, according to Law360.

Chinese manufacturers are facing the steepest duties, with rates ranging from 21.77% to 27.97% for most companies and a significant 218.15% for others. Chilean producers are subject to duties between 6.64% and 34.46%, although one company may be hit with a 173.91% tariff. Mexican producers face tariffs between 14.96% and 18.08%, with three companies possibly seeing rates as high as 96.95%.

Read more: UK overtakes China as top market for Chilean wine

The investigation, which began in January, was prompted by a petition from the US Glass Producers Coalition. The coalition also claims that Chinese manufacturers are receiving unfair subsidies from their government.

In a separate preliminary decision, the DOC has already suggested countervailing duties of 202.70% on certain Chinese producers, while one compliant company could see a lower rate of 21.14%.

The final results of these investigations are expected to be released in August and January. The governments of China, Chile and Mexico have not yet commented on the preliminary findings.

Meanwhile, Chilean wine exports experienced a resurgence in early 2024, with volumes rising by 9.6% and values by 3.3%. This recovery follows a difficult 2023, marked by a 20% drop in export values and an 18% decline in volume. The US and Chinese markets were particularly hard-hit, with Chile's wine exports to China suffering despite the absence of tariffs.

Although Chile benefited from China's tariffs on Australian wine, the Chinese market's overall contraction limited growth. However, the UK's increased demand for Chilean wine, partly driven by quality and effective marketing, has helped offset some losses.

Australia has also recently benefited from the removal of tariffs. Australian wine exports increased by 17% to AU$2.2 billion in 2023-24, driven by a surge in exports to mainland China following the removal of tariffs on Australian bottled wine in March 2024. This resulted in a significant rise in export value to China, growing from AU$8 million to AU$400 million, though it remains a small fraction of past levels.

The removal of Chinese tariffs has helped Australian wine regain its position in China, but it has not yet fully alleviated the broader oversupply issues in the industry.

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