Australia yesterday threatened to take China to the WTO to counter a fresh round of punitive sanctions, as the two countries clashed over an investigation into the origins and spread of COVID-19.
Canberra said that it might seek remedial action to overturn almost 81 percent in tariffs on barley exports — the latest in a series of Chinese sanctions that many believe are politically motivated.
Beijing on Monday announced the measures — earmarked to last five years — after finding that Australian subsidies and dumping had “substantially damaged domestic industry.”
Both sides have insisted that barley is a technical trade issue, and Australian officials have played down fears of a trade dispute.
“To say that I’m disappointed is an understatement,” Australian Minister for Agriculture, Drought and Emergency Management David Littleproud said. “This is something that we will strongly reject, the premise that the Australian barley farmer is subsidized in any way, shape or form.”
“We will now work through the determination by Chinese officials, calmly and methodically, and reserve our right to go to the World Trade Organisation to get the independent umpire to make that determination,” Littleproud said.
The move has worsened a relationship that has become increasingly troubled as Beijing has become more assertive in flexing its growing military, economic and diplomatic power in the Asia-Pacific region.
Beijing reacted with fury to Australia’s recent calls for an independent investigation into the origins and spread of COVID-19 from an initial outbreak in China’s central Hubei Province.
In response, the Chinese ambassador in Canberra threatened a widespread consumer boycott of Australian products — a warning followed up by a bar on imports from four major Australian beef producers.
Australian Minister for Trade, Tourism and Investment Simon Birmingham said that Australia would not retaliate against China.
“We don’t pursue our trade policies on a tit-for-tat basis. We will continue to operate as we always do,” he said.
A joint statement from five Australian grain growers’ organizations said that the dispute was likely to halt exports to China, costing the industry at least A$500 million (US$327 million) a year.
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