Australia-China trade: Wine, seafood trade disputes could escalate

The relationship between China and Australia is as tense as ever, with industry still discussing its next steps on key commodities affected by the trade war.

Federal Trade Minister Dan Tehan and Prime Minister Scott Morrison in Portland, Victoria, last week. Picture: NCA NewsWire / Nicole Cleary

AUSTRALIA could escalate its concerns over China’s treatment of wine and crayfish imports, as the trade crisis between the two nations shows no signs of resolving.

Souring diplomatic relations over the past year have led to Australia’s $14 billion agricultural trade copping the brunt of China’s wrath, including prohibitive tariffs on barley and wine imports, crayfish left rotting on airport tarmacs, and timber imports banned.

Federal Trade Minister Dan Tehan this month announced Australia would take its dispute with China over barley tariffs to the next stage of World Trade Organisation proceedings.

Asked last week if there were any plans to escalate disputes over crayfish or wine, Mr Tehan said he was in discussion with those industries, having recently met with both the wine and seafood representatives.

“With barley, we’ve gone to the WTO. With the others, we’ve obviously been dealing with the Chinese Government directly as the official’s level,” he said.

“We’ll continue to work with the industry to see what steps we take, if we can’t get any resolution with those bilateral discussions we’re having at the official’s level.”

Mr Tehan – who will appear on The Weekly Times VirtuAg webinar tomorrow – said in a statement that trade with China remained strong, with goods exports down just 2 per cent to $145 billion in 2020.

He said the Government was actively helping Australian agribusinesses grow their markets, such as through its $72.7 million expansion initiative and the extended airfreight assistance scheme.

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