For the first time in more than two years on Thursday, May 18, 2023, China opened its borders to Australian timber imports, another indication that the strained bilateral relationship is being healed.
After Australia sought for an independent investigation into the causes of the COVID-19 pandemic, China imposed official and unofficial trade restrictions on a number of Australian products in 2020. One of those exports was timber.
The anticipated annual cost to Australian exporters of the items on the list; coal, wine, barley, cattle, seafood, cotton, and copper, was $14 billion.
However, since the center-left Labor Party took office a year ago and put an end to Australia’s nine-year conservative administration, relations have improved. Exports of Australian copper, cotton, and coal to China have lately resumed.
The embargo on timber imports was lifted as of Thursday, May 18, 2023, according to Xiao Qian, the Chinese Ambassador to Australia, because Australian exporters have allayed China’s concerns over quarantine. On Wednesday, May 17, 2023, the Australian government received a formal notification.
“So from today on, the Australian timber is going back to China,” Xiao told reporters.
The breakthrough happened during Trade Minister Don Farrell’s weekend trip to Beijing, when he sought to remove trade restrictions, particularly on Australian wine and barley.
Foreign Minister, Penny Wong praised China’s resumption of the timber trade. Before the ban, it was worth $1 billion annually.
During a joint press conference with her Philippine colleague Enrique Manalo while on a visit to Manila, Wong stated, “We are pleased with this development.”
She continued, “We do believe that removal of these trade impediments benefits both parties,” referring to Australia and China.
A Step Toward Stabilizing Economic Relationship With China
Australian Treasurer, Jim Chalmers opined that China’s decision on timber was a step toward his government’s objective to stabilize the economic relationship with China.
“It’s a crucially important market for us and we want to stabilize the relationship and any progress in lifting these trade restrictions is welcome,” Chalmers told reporters.
The Australian Forest Products Association, which represents a range of forestry and paper industries, also welcomed China’s decision.
The association’s Chief Executive Joel Fitzgibbon noted in a statement, “When the ban came into effect more than two years ago, it caused a great deal of upheaval and uncertainty for many timber exporters and the broader forest sector and this resolution is welcomed,”
China is Australia’s biggest trading partner, with two-way trade totaling $287 billion last year.
In April, Australia suspended a complaint to the World Trade Organization in a bid to reopen the Chinese market to Australian barley.
In return, China has agreed to review its decision to impose an 80% tariff on the grain. Australia hopes that China will agree within months to lift tariffs on both Australian barley and wine.
