Australian winemakers hopeful of breakthrough on $1.2bn China trade but still plan to diversify markets

After government announced deal with China that could end tariffs on barley, wine producers now cautiously optimistic

• Follow our Australia news live blog for the latest updates
• Get our morning and afternoon news emails, free app or daily news podcast

Australian wine producers hope Beijing could soon remove tariffs that slashed the $1.2bn trade by 99% – but say they are wary about relying too heavily on the Chinese market.

After the Australian government announced a deal with China that could lead to the scrapping of tariffs on barley within months, wine producers also expressed cautious optimism.

Sign up for Guardian Australia’s free morning and afternoon email newsletters for your daily news roundup