Oz may take China to WTO over 200 per cent wine tariffs
The latest escalation in trade tensions with China could lead Australia to appeal to the World Trade Organisation if the two countries fail to resolve the tariffs slapped on $1.2 billion in wine exports by Beijing.
NSW
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Australia makes “no apologies” for the steps taken to protect its national interest against foreign interference, but will continue to pursue trade with China despite current tensions.
Treasurer Josh Frydenberg said China had become “more assertive” which had created “real challenges on the trade front,” including $1.2 billion in wine exports slapped with tariffs this week.
“We will continue to make our case to the Chinese government about the importance of this two-way trading relationship and we are always ready to engage in a respectful and mutually beneficial dialogue,” he said.
“But where Australia’s national interest needs to be defended, we will and we make no apologies for various actions that we have taken on a number of fronts including having a foreign investment framework that ensures the national interest is protected.”
This year China has threatened trade sanctions and regulatory actions against Australian barley, timber, wine, beef, coal, cotton, rock lobsters and copper.
Despite the growing list of commodities targeted by China, Mr Frydenberg said Australia was not going to “escalate” the trade tensions.
“What we will do is engage, as best we can, to make our case for why this trade should continue with China,” he said.
“There have been well known disputes and we would like to see the trade relationship return to where it was which was a mutually beneficial one in the interest of China and of Australia.”
Australia will also seek to use new trade deals with Britain and the European Union to cushion the impact of China’s escalating trade war.
Prime Minister Scott Morrison said the government was “very concerned” by China’s moves to slap tariffs on Australian goods, including up to 200 per cent in taxes on wine exports amid dumping allegations.
“We’ll do everything we can to try and make sure we can address these trade issues that have come up with China,” he told ABC radio.
“That’s one of the reasons why over the last seven years we’ve expanded the amount of our trade covered by agreements from 26 per cent to 70 per cent.”
Mr Morrison said he was looking at how the government could get “a number of our producers through this difficult time”.
“We have been working very hard on expanding trade opportunities,” he said.
Trade Minister Simon Birmingham has revealed Australia may pursue China through the World Trade Organisation over the wine tariffs should the two countries fail to resolve the issue bilaterally.
Mr Birmingham said Australia is appealing the barley tariff before the WTO, but the dispute over wine had not yet reached that point.
“We are calling them out through the WTO, while also still using all of those processes in the Chinese system to try to resolve them,“ he said.
“But ultimately, these are Chinese decisions, China has chosen to apply them on Australia, and only China can choose to reverse them.”
Mr Birmingham said Australia wanted China to succeed despite the trade issues.
“We do see a much more aggressive or assertive China in terms of the way it engages with the world,” he said.
“Unlike other parts of the world we want to see China prosper, but we want to make sure across our region all nations engage in a way that is respectful of the sovereignty of one another and supports the peaceful development of our prosperity and nation.”
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