none

Ai Chief: Government takes ‘right’ action against China on barley

21-12-2020
by 
in 
“It is right and proper that Australia has launched action against China in the WTO to defend claims that we are dumping and subsidising our barley exports,” Mr Willox said.

The boss of Australia’s employer association has applauded the Morrison Government’s threats to take China to the World Trade Organisation over the current trade crisis.

Continuing tensions over foreign investment has spilled into the trade sector, with China imposing anti-dumping duties on barley and wine exports.

Chief Executive of Ai Group, Innes Willox, welcomed the government’s decision to challenge China on its practices, saying country needed to be held to account.

“It is right and proper that Australia has launched action against China in the WTO to defend claims that we are dumping and subsidising our barley exports,” Mr Willox said.

“Business welcomes the certainty provided by the World Trade Organisation’s rules for a stable and strong global trading system.

“China’s and Australia’s prosperity was built on the back of these rules and we have both been loud advocates on the value and need for these rules.”

China imposed a tariff of 80.5 per cent on Australia’s barley exports in May following the conclusion of China’s 18-month anti-dumping investigation, ruling that the dumping of cheap Australian barley had hurt its domestic market. The duties comprised an anti-dumping tariff of 73.6 per cent and a countervailing subsidy margin of 6.9 per cent.

Australia’s trade minister Simon Birmingham announced the government would be taking the case to the WTO in an attempt to bring China into line.

While Beijing is likely to be unperturbed, there is precedent for similar actions brought by Australia against other nations.

“From time to time there are issues to resolve with the independent umpire and it is not the first time that China and Australia have been at odds in the WTO, as one would expect of significant trading partners,” said Mr Willox.

“WTO action is business as usual and Australia has been an active participant, recently successfully, taking on Canada over their treatment of our wines, and Indonesia took Australia to the WTO as we were successfully negotiating a new FTA.

“The WTO action is not a signal that we can’t work together; it should be seen as a reasonable option for responsibly settling disputes between two mature and long-standing trading partners,” he added.

But Australia’s claims are likely to fall on deaf ears. There are currently no serving judges on the WTO’s Appellate body for the first time in 25 years after the departure of a Chinese member – the last among the appeals panel – which completely eroded the WTO’s ability to handle disputes.

The relationship worsened back in November after a Chinese government official retweeted a doctored image showing an Australian soldier holding a knife to the throat an Afghan child.

Prime Minister Scott Morrison demanded an apology but has yet to receive one.

Tensions are not expected to be resolved soon, with ex-ASIO boss Dennis Richardson believing the bitter relationship to last at least two years.

Related news & editorials

  1. Increase the capture of tyres for value recovery and invest to build domestic recycling capacity.
    25.01.2021
    25.01.2021
    by      In , In
    A new roadmap released by Australia’s national science agency has developed key strategies for creating jobs and reclaiming billions in economic value from plastic, glass, paper and tyres currently going into landfill.
    The CSIRO’s National Circular Economy Roadmap found innovation is crucial to... Read More
  2. “WMRR looks forward to working closely with the NSW government as it rolls out Remanufacture NSW"
    25.01.2021
    25.01.2021
    by      In
    The Waste Management and Resource Recovery Association of Australia has welcomed the announcement of a new $35 million grant round in NSW, which will be offered through the newly created Remanufacture NSW.
    NSW has rounded off a week of multi-million-dollar funding announcements for essential waste... Read More
  3. An upgrade to existing mining digger buckets was required and thanks to their ongoing association with Jaws, were able to work directly with their engineering team the installation.
    25.01.2021
    25.01.2021
    by      In , In , In
    With a long-standing history, Jacks Hydraulic Services (JHS) and Bonfiglioli recently embarked on another successful installation for a customer in the heavy-duty industry.
    Founded in 1998, JHS is a premier distributor of Parker Hannifin in Australia and incorporates other exclusive bands such as... Read More
  4. Construction is underway for the Riverina Intermodal Freight and Logistics hub which will enable the exporting of freight across Australia and abroad.
    21.01.2021
    21.01.2021
    by      In , In
    Construction is underway for the Riverina Intermodal Freight and Logistics hub which will enable the exporting of freight across Australia and abroad.
    Deputy Premier John Barilaro said the development of the 60-hectare Bomen Industrial Precinct near Wagga Wagga is fantastic news for the Riverina... Read More