Coronavirus: China puts our iron ore in the fast lane
China will streamline Customs clearance of Australian iron ore from next month in a move welcomed by the Morrison government.
China will streamline Customs clearance of Australian iron ore from next month in a move welcomed by the Morrison government after Beijing’s moves against the nation’s beef and barley.
Despite relations with China remaining hostile over Australia’s support for an independent international investigation into the origins of COVID-19, Trade Minister Simon Birmingham said the iron ore Customs changes were a “positive example” of President Xi Jinping’s pledge to further open up markets in the communist nation.
The Australian understands China’s decision to improve processing of iron ore imports is not intended as a gesture to ease tensions with Australia but the result of long-running talks between mining companies and Beijing.
Senator Birmingham said Australia remained committed to the “smooth facilitation of mutually beneficial trade between Australia and China”.
With Brazil experiencing a surge in COVID-19 deaths and suffering major supply issues, Australia remains China’s most important source of iron ore.
From June 1, Customs checks will no longer be mandatory and will be at the discretion of importers, who will decide if they want batches of iron ore to be inspected.
Minerals Council of Australia chief executive Tania Constable welcomed China’s move to streamline its iron ore testing, which “recognises the high quality of Australia’s iron ore”.
“As a key partner with China’s steel industry, Australia supplies 60 per cent of China’s iron ore and these reforms will enhance this valued business partnership,” Ms Constable said.
“Australia’s iron ore miners have been the leading suppliers to China’s steel industry this year and supported its post-COVID economic recovery.
“Post COVID-19, world demand for metals and minerals — especially industrial metals such as steel, copper and aluminium — will grow in line with the expanding needs of highly populated nations.”
Ahead of China’s National People’s Congress meeting on Friday, US Secretary of State Mike Pompeo declared the US “stands with Australia” in the face of the latest bullying from China, adding that the world was waking up to Beijing’s hostility towards free nations.
“The Chinese Communist Party chose to threaten Australia with economic retribution for the simple act of asking for an independent inquiry into the origins of the virus. It’s not right,” he said.
“We stand with Australia and the more than 120 nations now who have taken up the American call for an inquiry into the origins of the virus, so we can understand what went wrong and save lives now and in the future.”
Australian government officials are understood to remain concerned that Chinese authorities will target other Australian products but that iron ore will not be on any “hit list”.
The government is considering launching a challenge through the World Trade Organisation against China’s 80 per cent tariff on Australian barley imports.
A BHP spokesman said the iron ore changes would benefit both exporters and customers.
Additional reporting: Nick Evans , Cameron Stewart
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