WTO sets up panel to examine China’s anti-dumping duties on Australian wine

The World Trade Organisation will set up a panel to examine China’s imposition of anti-dumping duties on imported Australian wine.

The dispute settlement body met behind closed doors on Tuesday to agree to Australia’s second request for an examination, after its first attempt was knocked back earlier this year, and heard bilateral discussions had not been possible due to the two countries’ souring relationship.

Trade tensions between Australia and China worsened in 2020 after Canberra called for an international inquiry into the origins of Covid-19, which first appeared in Wuhan in central China.

As a result, tariffs were imposed on Australian wine and barley, and imports of beef, coal and grapes were limited.

In March, Beijing confirmed tariffs would apply for five years, in a significant blow to the Australian wine industry.

As a result of the tariffs, wine exports to China have fallen drastically.

China’s delegate to the WTO on Tuesday said it regretted Australia’s submission for an examination, saying China would “vigorously defend” the “legitimate measures” it took in introducing anti-dumping and countervailing duties on imported wine, and maintain it did not break any WTO rules.

“China remains open to further engagement with Australia in food faith, with a view to positively resolving the dispute,” a WTO summary of proceedings said.

Australia’s delegate told the dispute settlement body it “valued its community and economic ties with China, and remains open to further discussions with China”.

“Australia … remains ready to engage in bilateral discussions with China. Australia is disappointed that it is not seeing any concrete steps by China to respond to its concerns,” the WTO said.

Deliberation typically takes six months, before a ruling is prepared, which can then be appealed.