Australia and China have announced a significant breakthrough in their longstanding wine tariff dispute, potentially paving the way for resumption of the two countries’ unimpeded wine trade as early as next April.

The news came as Australian Prime Minister Anthony Albanese announced on Sunday that he is set to visit China from November 4-7, meeting with top Chinese officials, President Xi Jinping and Premier Li Qiang. This visit, aimed at mending ties with Australia’s primary trading partner.

Australia has agreed to suspend its WTO wine complaint against China. In exchange China has agreed to take “an expedited review” of its punitive tariffs against Australian wine. The review would take around five months.

The two nations have also agreed to discuss another issue concerning Australian duties on Chinese wind towers. The relationship, previously strained by various issues, has been a focal point for Albanese since his 2022 inauguration.

The two nations have found common ground, with China’s Commerce Ministry stating that a consensus has been reached to address the World Trade Organization (WTO) wine dispute and another concerning Australian duties on Chinese wind towers.

“We have agreed on the issue of wine for there to be a review of China’s position on wine tariffs to be conducted over the next months,” Albanese told reporters.

“We will suspend our action before the WTO, but we’re very confident that this will result in once again Australian wine, a great product, being able to go to China free of the tariffs.”

During the scheduled talks, topics like economic partnerships, climate change initiatives, and enhancing people-to-people ties will be on the agenda. “Engaging further with President Xi and Premier Li is in Australia’s national interest,” said Albanese.

Australia’s wine exports to China dropped from AU$1.2 billion (US$757mn) prior to the tariffs being imposed to only AU$8 million in the year to date according to the Australian Grape and Wine trade body.

The wine industry, especially the red wine sector, has faced overcapacity challenges over the past year. Rabobank’s data indicates a staggering 2 billion liters of wine, equivalent to 2.8 billion bottles, currently stored in Australia. The potential resumption of large-scale exports to China could alleviate this overcapacity issue.

Tim Ford, CEO of Australia’s leading wine producer Treasury Wine Estates, told Financial Times the company welcomed the tariff review announcement. Labeling it as “great news,” Ford expressed optimism for a “new era” in the industry as discussions advance.

“A favorable tariff review promises only positives for Chinese consumers, the wine category, the Australian wine sector, and TWE,” Ford remarked.

The announcements are the latest in a series of easing of tensions between the two countries that has already seen China lifting restrictions on imports of Australian coal, timber and barley.