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China-Australia relations: Canberra ‘very concerned’ over reports of ‘discriminatory’ coal ban

  • Canberra is trying to verify Chinese media reports that Beijing has directed power plants not to import Australian coal
  • Trade minister Simon Birmingham says, if true, the action could constitute a ‘breach of China’s commitments’ at World Trade Organization

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Canberra is trying to verify Chinese media reports that Beijing has directed power plants not to import Australian coal. Photo: AFP

Canberra is seeking clarification from Beijing over reports that it has blocked Australian coal imports, in what could be a “breach” of China’s commitments as a member of the World Trade Organization (WTO).

China’s top economic planning agency, the National Development and Reform Commission (NDRC), approved 10 major power generators over the weekend to import coal to address a domestic supply shortage, except from Australia, state-owned tabloid Global Times reported.

The NDRC and the national coal industry body, China Coal Transportation & Distribution (CCTD), have not yet made an announcement about a ban, but the foreign ministry said on Tuesday afternoon any export restrictions were being handled by relevant government departments in line with Chinese rules and regulations.
These actions, if true, would potentially constitute discriminatory action against Australian producers
Simon Birmingham
Australian trade minister Simon Birmingham said on Tuesday the government was “very, very concerned” about the reports, adding that type of boycott could “constitute a breach of China’s commitments” as a WTO member nation.
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“These actions, if true, would potentially constitute discriminatory action against Australian producers, potentially constitute a breach of the type of undertakings that China has made to Australia and to the world in relation to their trade practices, and potentially harm China’s ability to meet the other types of commitments it’s given to the world in relation to its emissions profile,” he said during a press conference in Sydney.

Under the WTO rules, countries cannot discriminate between trading partners, except in certain circumstances – for example, if a product were contaminated or could pose a threat to human health. Anti-dumping provisions are also available to trading countries to protect their domestic market.

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China to Australia: Coal import restrictions are responsible for domestic industries and customers

China to Australia: Coal import restrictions are responsible for domestic industries and customers

Australian Prime Minister Scott Morrison told the media in Tasmania that the government was waiting for clarification from Beijing. Though diplomatic lines remained open, he admitted there was no timetable for direct ministerial or leader-level discussions.

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