Treasury Wine Estates Ltd (ASX: TWE) shares are up almost 3% in early trade on Monday.
Shares in the S&P/ASX 200 Index (ASX: XJO) global wine company closed on Friday trading for $11.77. At the time of writing, shares are swapping hands for $12.12 apiece.
For some context, the ASX 200 is down 0.6% at this same time.
Here's what's piquing ASX 200 investor interest today. And why now may still be an opportune time to snap up some Treasury Wine shares.
All eyes on China
Treasury Wine has faced some stiff headwinds since China slapped punitive tariffs on numerous Australian exports in 2020, including wine.
China implemented the punishing duties in the wake of the Aussie government's support for an international investigation into the origins of the COVID-19 pandemic.
Prior to imposing those tariffs, China represented Australia's biggest wine export market.
After almost four years, Treasury Wine shares are getting a welcome boost today on news that China may be ready to remove its wine duties.
Over the weekend, Prime Minister Anthony Albanese announced the suspension of Australia and China's trade dispute with the World Trade Organisation (WTO) after China agreed to an "expedited review" of the wine tariffs.
"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 which have been imposed," Albanese said (quoted by The Canberra Times).
Albanese noted that one out of every four Aussie jobs was dependent on trade. He added that "our most significant trading partner in terms of our exports is China".
How did Treasury Wine react?
In an ASX announcement this morning, Treasury Wine welcomed the news, noting that the tariff review was expected to take up to five months.
The company said it was "well placed to rebuild its business in China" if the punitive tariffs were removed. It cited a series of plans it would implement progressively over time. Treasury Wine stressed that its rebuilding plans for the Chinese market would not come at the expense of long-term growth opportunities in its other key markets.
Commenting on the news sending Treasury Wine shares sharply higher today, CEO Tim Ford said:
It's great to see an agreement for an expedited pathway forward to allow our Australian brands and wine to be sold in the Chinese market.
There are only positives to come out of a favourable review for the Chinese consumer, customers and the wine category, for the Australian wine industry and for TWE.
How have Treasury Wine shares been tracking?
Despite today's boost, Treasury Wine shares remain down 3% over the past 12 months.