Australia will formally request the involvement of the World Trade Organization in the ongoing trade dispute with China.
Beijing this year slammed the anti-dump and anti-subsidy activities of about 80.5% against Australian barley. This is one of the few steps China has taken against Australian exporters in 2020.
What Did Australia Say?
Simon Birmingham, Australia’s trade minister who is moving to the treasury, said Australian officials in Canberra, Beijing and Geneva advised their Chinese counterparts on Tuesday with the aim of his country ‘requesting legal talks “with China on barley prices.
“We will formally make those requests through the WTO tonight,” Birmingham said, according to a statement issued at a press conference on Wednesday. He described Australia’s decision to join the WTO as a result of “extensive consultation” with the country’s industry.
‘Failed’ Dialogue & Diplomacy Attempts
The Australian government and authorities have used every means at their disposal to involve China in negotiations to resolve trade disputes, Agriculture Minister David Littleproud told CNBC.
“The trade minister and I have made many efforts to reach out to our partners and have discussions about any concerns and problems they have. We have been affected by every effort,” he told CNBC’s Street Signs Asia. on Wednesday.
In addition to barley tariffs, China has also taken a number of steps against other Australian traders. Includes a ban on the importation of red meat abattoirs. Beijing is also reportedly providing the public with government services and milling equipment to stop importing coal from Australia. In October, two groups in the Australian cotton industry said China had begun to undermine its spinning mills using cotton imported from Down Under.
Trade Tensions
Relations between Canberra and Beijing began badly this year after Australia backed a growing call for an international investigation into China’s response to the coronavirus epidemic.
“There has been growing evidence that this is more closely related to political issues and our sovereignty, and the decisions we have made about our sovereignty and our policies and values in Australia – rather than technology trade issues,” Littleproud said.
“We intend to approach the independent referee, the WTO, and ask them to resolve this as we will strongly and firmly defend the fact that we have not discarded barley in the Chinese market. And we do not support Australian farmers,” he added.
Littleproud explained that Australia would not relinquish its sovereignty as it did not expect other nations to do the same. China needs to understand that “the world is watching, looking at their actions and actions here,” he said, adding that it was important for Beijing to start negotiations with Canberra immediately.
Last month, reports said the Chinese ambassador to Australia had given several stores a list of Beijing complaints including Canberra’s decision to ban technology company Huawei from the 5G network in 2018 and to block Chinese foreign investment deals in the country.
China’s Thwack To Australian Imports
Chinese media this week said China’s top economic planner had given permission to coal-fired power plants outside the permits, outside Australia, Reuters reported. Canberra also urged Beijing to clarify the reports.
Coal is the third-largest export in Australia and Prime Minister Scott Morrison has said China’s departure from Australia will be a “loss” situation that will be detrimental to the environment, according to Reuters.
While China has been Australia’s largest hot coal Importer, accounting for about 30% of total exports from Down Under by 2018, that market share has been falling since then, according to ANZ Research analysts. They said on Tuesday they were aware that Australian retailers had found more buyers in South Korea, Vietnam and Japan and were expected to hold “well” despite a Chinese ban.
Beijing also has to hit Australia’s main export – iron ore. Analysts say that this may be due to lack of alternatives.
Synopsis
- Beijing this year slapped anti-dumping and anti-subsidy duties to the tune of 80.5% against Australian barley.
- Australia will formally request the WTO to consult on Canberra’s trade dispute with Beijing over Australian barley.
- That is after government officials have exhausted every attempt to have dialogue with their Chinese counterparts, according to Australia’s Agriculture Minister David Littleproud.
