Australia threatens to take China to WTO over ‘unjustifiable’ increase in duties

Australia’s trade minister, Dan Tehan has threatened to take China to the World Trade Organization over its “unjustifiable” decision to increase duties on Australian wine imports for up to five years.

In the latest salvo in the growing rift between Beijing and Canberra, China’s commerce ministry earlier announced levies ranging from 116.2% to 218.4% would be slapped on Australian wine imports from 28^th March 2021.

The ministry said it was imposing the duties after an investigation found “dumping and subsidies on imported wines” from Australia affects the Chinese market.

Addressing the increased duties, Tehan, said the tariffs meant it was “basically impossible” for Australian wine to be competitive in the Chinese market.

“This decision which has been taken by the Chinese government is extremely disappointing and completely unjustifiable. We will be looking at next steps; those next steps will include looking at taking this matter to the WTO.”

According to Australian government data, wine exports to China hit a record A$1.3bn in 2019. This makes it the biggest market by value for the product.

If Australia makes good on its threat, it wouldn’t be the first time Canberra has reported China to the WTO.

Late last year, Australia called for the WTO to investigate Chinese tariffs on barley imports. This was after a series of economic sanctions or disruptions to Australian products heading to China’s vast market.

Experts say diplomatic relations between the two countries have reached their lowest since the deadly 1989 Tiananmen Square crackdown. They see the sanctions as retribution for Australia blocking Chinese investment in sensitive areas and publicly calling for an investigation into the origins of the coronavirus.

•  China reports Australia to UN over ‘violated’ human rights

Australia stands with Britain amid Chinese sanctions

Earlier this week, China announced sanctions against organizations and individuals in the United Kingdom over “lies and disinformation” about Xinjiang.

The move came in response to Western sanctions against Chinese officials over their alleged role in Xinjiang’s human rights abuses. 

China vowed retaliation and firstly announced sanctions against European politicians and researchers, including the Mercator Institute for China Studies in Berlin.

• US and Canada follow EU and UK in sanctioning Chinese officials over Uighur human rights abuses

Beijing then followed up by targeting British members of parliament including Tom Tugendhat, the foreign affairs committee head; Iain Duncan Smith, who co-chairs an international alliance of democratically elected lawmakers critical of China; as well as the Newcastle University anthropologist Joanne Smith Finley.

China’s Foreign Ministry in a statement noted that the British individuals and entities had “maliciously spread lies and disinformation”.  As a result, they and their immediate family members would be banned from entering China or doing business with China.

Commenting on the issue, Australian Prime Minister, Scott Morrison stated that Australia stands with the British Prime Minister, Boris Johnson.

He intimated that the MPs and other British citizens sanctioned by China “are performing a vital role shining a light on the gross human rights violations being perpetrated against Uyghur Muslims”.

“So, Boris (Johnson) – well done, mate – we stand with you and thank you for standing with Australia as well.”

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