Don Farrell said after talks with Chinese counterpart Wang Wentao in Abu Dhabi that Beijing would conclude a review of tariffs -- imposed four years ago when relations between the two countries were in deep freeze -- by the end of March.
Farrell told public broadcaster ABC that he won assurances the review process "to remove the unfair tariffs on Australian wine exports into China" was near an end.
"He made it clear that their processes were on track and we would get a result by the end of March," Farrell said.
China imposed tariffs on key Australian exports such as barley, beef and wine in 2020, flexing its economic muscle in protest at a string of policy decisions.
Canberra's move to ban Huawei from 5G contracts, its targeting of Chinese influence operations in Australia and a decision to challenge China on its handling of the Covid-19 pandemic all irked Beijing.
China had slapped tariffs of as much as 218 percent on Australian wine, forcing producers to hunt out other markets from Europe to Hong Kong.
Australia's wine trade with China was worth almost US$1 billion in 2019 but today is estimated to be worth less than US$10 million.
The sanctions, coupled with the COVID crisis, plunged many Australian winemakers into crisis.
- A 'valuable lesson' -
Mornington Peninsula winemaker Nikki Paulun exported 200,000 cases a year to China before 2020, or 90 percent of her production.
She had to turn to the domestic market to survive but is now "incredibly hopeful" about a return to business in China.
Leading Australian wine group Treasury Wine Estates has said it was ready to redirect some of its renowned Penfolds wines to the Chinese market when sanctions are lifted.
But Paulun told AFP there had been a "valuable lesson to learn" about overreliance on one market and resistance to market shocks.
Tim Mableson, a market analyst at consultancy KPMG, agreed: "We do need a return of the China market in some form but we need to ensure we don't return to an overreliance on it."
He believes overproduction may continue to be an issue and some "vineyard owners need to consider whether they want to continue in this industry or not".
China lifted tariffs on Australian barley in August after a similar review and Australian producers have since reported a surge in exports of the grain, which is used to brew beer and feed pigs.
But Lee McLean, president of the wine industry group Australian Grape and Wine, said there was little confidence that wine producers would be able to completely regain their foothold in the Chinese market.
"When you're out of a market for a certain amount of time, other nations... come and take some market share," McClean said.
Drinking trends may also play a role, he said.
"Globally, consumers are drinking less wine than they were a couple of decades ago. The same is happening in China," McLean said.
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