Forestry industry warns hundreds of SA jobs are at stake in new China trade block

The state’s forestry sector is warning hundreds of jobs are at stake in the state’s South-East, amid a new trade block from China.

South Australia’s forestry industry is warning hundreds of people could lose their jobs if a trade block from China is not resolved soon.

China is no longer accepting log exports from Victoria, citing concerns about the detection of live bark beetle in consignments from the state.

The majority of the logs exported to China from South Australia are sent from Portland. The Construction, Forestry, Maritime, Mining and Energy Union’s Brad Coates said up to 500 forestry jobs could be lost in SA by Christmas if the issue was not resolved soon.

“There was a ship being loaded in Portland and they were about half way through that loading process and for the last 24 hours when they got that news, they’ve been unloading that ship,” he said.

“There were two other ships due in the next week and they’ve been turned around.”

The forestry industry is the latest to be impacted by Chinese export problems, which have also included barriers to seafood and wine shipments.

The issue has huge implications for the state’s South-East, where thousands of people are employed in forestry.

Mr Coates said SA’s timber exports to China were worth tens of millions of dollars each year – including logs, woodchips and processed timber.

Labor’s regional development spokeswoman Clare Scriven said the trade barrier presented a significant threat to the state’s $1.3bn industry.

She called on the State Government to provide a support package to forestry businesses.

“The Forestry Sector supports 6,000 direct jobs and supports another 13,000 indirectly,” she said.

“It is vital that the State Government engages with industry and provides a support package to ensure there are no job losses to the region.”

The issue has huge implications for the state’s South-East, where thousands of people are employed in forestry.

Primary Industries Minister David Basham said the Government was working with industry and the Federal Government to find a way through the situation.

“South Australians can support the local timber industry and jobs by supporting use of value-added timber products from our sustainably grown plantations,” he said.

Meantime, winemakers are facing customs delays in China with increased inspections, testing of wine and more scrutiny of import documents.

It comes amid fears China could impose interim tariffs from next week, after Australian companies sent final evidence to China’s anti-dumping wine inquiry on Friday.

Australian Grape and Wine chief executive Tony Battaglene confirmed the extra customs procedures had been “stepped up from normal” for the past week.

“We’re just waiting to see whether shipments get through this. We haven’t heard of anything that’s been rejected yet,” Mr Battaglene said.

Mr Battaglene said there was “no reason” to expect new interim import taxes but it would also not surprise him if China imposed them next week.

“People are nervous and uncertain and we’re just hoping we’ll get a bit of clarity.

“If it’s just increased customs procedures we can deal with that, we’re compliant so we can deal with that, but it’s just important to understand exactly what’s happening,” he said.

It comes as Beijing’s foreign ministry spokesman made his bluntest comments yet urging Australia to improve the relationship.

“Let him who tied the bell on the tiger take it off. One’s fault should be amended by oneself,” Wang Wenbin said.