Australian Minister for Trade, Tourism and Investment Dan Tehan yesterday threatened to take China to the WTO over an “unjustifiable” decision to hike duties on Australian wine imports for up to five years.
In the latest salvo between Beijing and Canberra, the Chinese Ministry of Commerce announced that levies ranging from 116.2 percent to 218.4 percent would be slapped on Australian wine imports from today.
The tariffs mean it was “basically impossible” for Australian wine to be competitive in the Chinese market, Tehan said.
“This decision which has been taken by the Chinese government is extremely disappointing and completely unjustifiable,” Tehan told reporters in Melbourne.
“We will be looking at next steps, and those next steps will include looking at taking this matter to the World Trade Organization,” he said.
On Friday, the Chinese ministry said that it was imposing the duties after an investigation found “dumping and subsidies on imported wines” from Australia had affected the Chinese market.
Wine exports to China in 2019 hit a record A$1.3 billion (US$992 million), Australian government data showed, making it the biggest market by value for the product.
Late last year, Australia called for the WTO to investigate Chinese tariffs on barley imports following a series of economic sanctions or disruptions to Australian products to China’s vast market.
Australian Prime Minister Scott Morrison in Sydney accused Beijing of using the tariffs as retaliation.
Morrison said that Australia stands with British Prime Minister Boris Johnson after China imposed sanctions on several people and entities in the UK and the EU over their vocal support for the Uighur Muslim minority in Xinjiang, where Beijing is accused of human rights offenses.
“So Boris — well done, mate — we stand with you and thank you for standing with Australia as well,” Morrison said.
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