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Grapes of wrath! Australia takes wine dispute with China to WTO
Bottles of Australian wine in a Beijing store. Photo: Reuters

Relations between the two countries have taken a serious downturn since Canberra called for an international probe into the origins of Covid-19 – with trade in beef, coal, barley and wine being especially hit

 

The Australian government has called on the WTO to take China to task over wine tariffs that have all but wiped out their biggest export market. 

Canberra announced on Saturday that it was lodging a formal complaint with the World Trade Organization over China’s imposition of anti-dumping duties on Australian wine exports, escalating further the trade stand-off with Beijing. 

“The government will continue to vigorously defend the interests of Australian wine makers using the established system in the WTO to resolve our differences,” Dan Tehan, minister for trade, tourism and investment, said in a joint press release with the Agriculture Minister David Littleproud.

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Relations with China, already rocky after Australia banned Huawei from its nascent 5G broadband networking in 2018, have worsened since Canberra called for an international inquiry into the origins of the coronavirus, first reported in central China last year.

China, Australia’s largest trading partner, responded by imposing tariffs on Australian commodities, including wine and barley and limited imports of Australian beef, coal and grapes, moves described by the United States as “economic coercion”.

Last year, Australia launched a formal appeal to the WTO seeking a review of China’s decision to impose hefty tariffs on imports of Australian barley.

The wine tariffs doubled or tripled its price and made the Chinese market unviable for exporters, the Australian government had said earlier. 

WIPED OUT

Australian winemakers shipped just A$12 million ($9 million) of wines to China in the four months from December to March, from A$325 million a year earlier, industry figures showed, confirming that hefty new tariffs have all but wiped out their biggest export market. 

Earlier in June, Prime Minister Scott Morrison called on the WTO to address the stand-off between the two countries and days later won the support of the Group of Seven countries for a tougher stance against China’s growing impact on global trade. 

On Saturday, the government said that despite the complaint, Canberra was ready to cooperate with Beijing.

“Australia remains open to engaging directly with China to resolve this issue,” Tehan and Littleproud said.

 

  • Reporting by Reuters

 

Read more:

Australian prime minister slams China over trade bullying

Australian economy surpasses its pre-pandemic size

 

Sean OMeara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.

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