Australia Takes China Wine Tariffs to WTO as Bilateral Ties Sour

Australia has already taken Beijing to the WTO over its tariffs on Australian barley. File

Australia has already taken Beijing to the WTO over its tariffs on Australian barley. File

The Australian government said on Saturday it was filing a formal complaint with the World Trade Organization over China's imposition of anti-dumping duties on Australian wine exports, further increasing the trade confrontation with Beijing.

According to ABC television, Australian Trade Minister Dan Tehan stated that Australia intends with this decision to defend the interests of its wine industry, which has suffered "serious damage" from "the actions taken by the Government of China".

He added that Australia does, however, remain open to engaging directly with China to resolve this issue.

The move is another step in a trade dispute between Australia and its key trading partner, and follows Prime Minister Scott Morrison's warnings about his government's willingness to respond to all countries trying to use it. "Economic coercion" Against him.

Many voices in Australia believe it is in retaliation against Australia's rejection of Chinese investments in sectors considered strategic, as well as Australia's request to investigate the origins of the coronavirus pandemic that began in China in late 2019.

Disclaimer:Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate.

Since Canberra called for an worldwide investigation into the origin of the coronavirus, relations with China have deteriorated, the origin of the coronavirus for the first time past year Reported from central China.

Industry data shows that in the four months from December to March last year, Australian winemakers only exported 12 million Australian dollars (9 million USA dollars) of wine to China, compared with 325 million Australian dollars (243 million United States dollars) in the same period last year.

Last month, figures from industry body Wine Australia revealed for the year to March, said the total value of Australian global wine exports dropped to $2.77 billion, a decline of four per cent compared with the year before.

But Mr Tehan said the government was still willing to sit down with the Chinese government to resolve the dispute.

Australia is now progressing a WTO action Beijing's decision to slap 80 percent tariffs on barley exports, the action has been joined by Canada, Russia, and more recently New Zealand.

The G7 summit ended on June 12 with the announcement of US-led plans to counter China's trillion-dollar "Belt and Road Initiative", the hallmark of its efforts to extend economic influence around the world.

"The most practical way to resolve economic coercion is to restore the binding dispute settlement system of the global trade agency", he said in a speech before the summit.

Morrison has received explicit backing in his government's confrontation with China from the U.S. as well as from French President Emmanuel Macron during a visit to Paris following the G7 meeting.

Latest News