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SYDNEY: Australia’s trade minister threatened to take China to the World Trade Organization on Saturday (March 27) for its “unjustifiable” decision to increase tariffs on Australian wine imports for up to five years.
In the latest salvo between Beijing and Canberra, China’s Ministry of Commerce announced that levies ranging from 116.2% to 218.4% will be applied to Australian wine imports from Sunday.
Trade Minister Dan Tehan said the tariffs mean it is “basically impossible” for Australian wine to be competitive in the Chinese market.
“This decision that has been made by the Chinese government is extremely disappointing and completely unjustifiable,” Tehan told reporters in Melbourne.
READ: China tightens restrictions on Australian exports
“We will look at the next steps, and those next steps will include the possibility of bringing this matter to the World Trade Organization.”
On Friday, the Chinese Commerce Ministry said it would impose the tariffs after an investigation found that “dumping and subsidies on imported wines” from Australia affected the Chinese market.
Wine exports to China reached a record A $ 1.3 billion (US $ 900 million) in 2019, according to Australian government data, making it the largest market by product value.
READ: Comment – Why China is turning sour on Australian wines
At the end of last year, Australia also asked the WTO to investigate Chinese tariffs on barley imports, following a series of economic sanctions or disruptions to Australian products in China’s vast market.
Diplomatic relations between the two countries have reached their lowest level since the deadly crackdown on Tiananmen Square in 1989.
Many see the sanctions as a retaliation for Australia blocking Chinese investment in sensitive areas and publicly calling for an investigation into the origins of the coronavirus.
Australian Prime Minister Scott Morrison, speaking in Sydney, accused Beijing of using the tariffs as “retaliation.”
Morrison also said Australia supported British Prime Minister Boris Johnson after China imposed sanctions on several people in the UK and the EU for their vocal support for the Uighur Muslim minority in Xinjiang, where Beijing is accused of abuses.
“So Boris, well done buddy, we are with you and we thank you for being with Australia as well.”
