By Archishma Iyer
April 2 (Reuters) - Shares of Treasury Wine Estates
rose to their highest in about 11 months after the company said last week it will resume the distribution of some of its products in China after the Chinese Ministry of Commerce removed tariffs on Australian wine imports.
Treasury Wine rose as much as 3.2% to A$12.85 on Tuesday and the company's shares were on track to close higher for the fourth straight session.
The Australian markets were closed on Friday and Monday due to public holidays.
Winemaker Australian Vintage's shares also rose about 6% on Tuesday to their highest since late December.
Treasury Wine will use partnerships with customers in China to distribute its Penfolds entry-level Australian origin portfolio as well as its Premium Brands Australian-sourced priority portfolio, the company said on Thursday.
China would lift anti-dumping and anti-subsidy tariffs on Australian wine from March 29, the Chinese commerce ministry said last week, ending three years of punitive levies and offering long-awaited relief to Australian wine producers.
"Removal of tariffs creates a medium-term growth opportunity, with near-term modest growth to be driven by increased shipments of entry-level tiers into China and incremental price increases," Morgan Stanley analysts said on Monday.
The tariffs, of up to 218.4%, were first imposed in March 2021 for a period of five years along with a host of other trade barriers on Australian commodities when ties soured after Canberra called for a probe into the origins of COVID-19.
Ties have improved significantly since last year, leading China to steadily lift trade hurdles on Australian goods ranging from barley to coal.
(Reporting by Archishma Iyer in Bengaluru; Editing by Shounak Dasgupta)
((Archishma.Iyer@thomsonreuters.com))
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