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AUSSIE MEDIA: CANBERRA WILL HIGHLY LIKELY TAKE BEIJING TO WTO OVER WINE TARIFFS

By Siulan Law Mathews DipWSET

31-5-2021



Source: WTO

Australia will highly likely launch World Trade Organisation (WTO) action against Beijing’s decision to impose crippling tariffs on Australian wine imports after finalising consultation with wine exporters in recent weeks, according to Australian media reports.

If materialised, this will be Australia’s second WTO action against China in an attempt to resolve the recent trade disputes.

Canberra appealed to WTO in December last year against China’s move to bar Australian barley imports.

Australian news media reported that the Australian government has finished its initial round of consultation with the wine industry, and will take the next few weeks to decide whether to go to the WTO.

Local new reports quoted senior government sources as saying that it is highly likely that Australia would announce taking China to the WTO over the wine tariffs in the coming weeks.

The Australian wine industry strongly rejected Beijing’s anti-dumping and anti-subsidies verdicts on their wine exports to China, industry group Australian Grape and Wine has been a strong advocate to refer the matter to WTO.

"The industry as a whole is backing a WTO action," Australian Grape and Wine chief executive Tony Battaglene told ABC News.

However, News Corp reported on Thursday that Accolade Wines, owner of major labels like Hardys and Grant Burge, did not support a WTO appeal for fear of retaliatory action.

But Battaglene said that Accolade Wines had reached consensus with the Australian Grape and Wine board.

"We know that Accolade Wines are not opposing a WTO action if that's the route the government decides to go," Battaglene told ABC News.

"They're not putting any pressure on our organisation, or indeed the industry as a whole, or the government not to pursue WTO action if that's the decided route," he said.

Battaglene added that the government has already gone down the track with barley and it is logical for them to extend that to wine.

China announced in March that duties of up to 218 percent on Australian bottled wines will be effective for five years. Ironically, a WTO appeal could take up to five years to be resolved, this could mean that by the time the WTO comes up with a resolution on the matter, China’s punitive tariffs could have already expired.

(the writer can be contacted at: info@thewinechronicle.com)

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