China-Australia relations: Beijing ‘erred’ and ‘failed’ on wine, Canberra says in formal WTO complaint

Move involves China’s duties on Australian wine and marks the second dispute Canberra has launched at the World Trade Organization (WTO) against Beijing in just over six months
Both sides have 60 days to confer, and a WTO dispute panel may be set up if they fail to do so

China-Australia relations

Reuters

Published: 2:50pm, 29 Jun 2021

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Australia has formally filed its complaint to the World Trade Organization over China’s duties on bottled wine imports, the WTO said on Monday, confirming earlier intentions expressed by Canberra.

The dispute is the second that Australia has launched at the global trade body against China as bilateral relations have deteriorated to their lowest level in decades. The first, launched in December, concerns China’s barley import duties, and the WTO is currently looking into the case in a newly set up dispute panel.

“Australia has requested WTO dispute consultations with China concerning anti-dumping and countervailing duty measures imposed by China on imports of bottled wine from Australia,” the WTO statement says, noting that the request was circulated among WTO members on Monday.

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The latest “request for consultations” filed at the WTO in Geneva gives both sides 60 days to confer. If they fail to agree, a WTO dispute panel may be set up.

“Australia claims the measures in question appear to be inconsistent with various provisions under the WTO’s Anti-Dumping Agreement, the Agreement on Subsidies and Countervailing Measures, and the General Agreement on Tariffs and Trade 1994,” the statement says.

In its complaint, Australia accused China of “failing to account for the different qualities of wine and product differentiation within the wine market.”

It also said: “China erred in its interpretation and application of the definition of ‘domestic industry’”.

Australia’s foreign minister has previously said that such a complaint should enable bilateral negotiations.

Relations with China have worsened since Canberra called for an international inquiry into the origin of the coronavirus, which was first reported in China in late 2019.

China, Australia’s largest trading partner, responded by imposing tariffs on Australian commodities such as wine and barley, and has restricted imports of Australian beef, coal and grapes – moves described by the United States as “economic coercion”.