Australia's wine country is at a low, but Treasury Wine Estates is rising

However, the bigger news for TWE is that China is looking at scrapping the Australian wine tariff - which is sitting at 169% and has existed since 2020.

Investors have been buying the company's shares after news broke that Chinese Ministry of Commerce (MOFCOM) has released an interim draft determination relating to tariffs on Australian wine.

This tariff is an applied deposit rate of 169.3% to the imported value of its wine in containers of two litres or less which came about from accusations of dumping.

It's also worthwhile to note that TWE has a rosy outlook as its top line stable of wines is seeing greater sales, plus it's likely to benefit from Australia's wine production dropping to a 60-year low this year.

This decline is primarily attributed to the resurgence of Downy mildew in Australia, a cyclical phenomenon occurring approximately every 9-10 years. The impact of this disease on grapevines is profound, resulting in the rotting of berries, clusters, and shoots.