Australia will “vigorously defend” its wine trade because it faces greater tariffs from China, the nation’s agriculture minister mentioned.
“Whereas China … could wish to play video games with respect to market mechanisms, we’ve got the alternatives to ship this product into different markets due to the standard of it,” David Littleproud, Australia’s minister for agriculture, drought and emergency administration instructed CNBC’s Will Koulouris.
China’s Ministry of Commerce introduced Friday that it’ll impose anti-dumping duties some Australian wine imports from March 28. Beijing claims that Australia has been dumping and subsidizing its wine exports, which has harm China’s home wine sector consequently.
“We’re simply deeply upset with this choice, and we do not subsidize our farmers,” Littleproud mentioned. “Of the 37 OECD (Organisation for Financial Co-operation and Growth) nations on the planet, there’s just one nation that’s seen to subsidize their farmers lower than Australia,” he mentioned with out offering additional particulars.
“Australian wine is the second highest worth level wine in China,” the minister mentioned. “You do not go and dump a top quality product … right into a market corresponding to China.”
Relations between Canberra and Beijing soured after Australia supported a name for a global inquiry into China’s dealing with of the coronavirus, which was first reported within the Chinese language metropolis of Wuhan.
Since then, China has taken a spread of measures that impede Australia’s exports to the nation together with anti-dumping and anti-subsidy duties on Australian barley and an import ban on a number of pink meat abattoirs. Different merchandise which have been caught within the crossfire of tensions between China and Australia embrace lobsters, cotton, coal and iron ore.
Australia is among the few developed nations on the planet that exports greater than it imports to China, and Canberra has requested the World Commerce Group to mediate a dispute over duties on the nation’s barley within the Chinese language market.
For his half, Littleproud mentioned he has reached out to his counterpart in China asking for dialogue.
“We’re not gonna throw our toys out of the cot. We wish to be mature about this and once they’re prepared to speak … on the premise of what we have supplied to them, then we’ll be there for them. However till they’re ready to try this, it will be very tough,” he mentioned.
— CNBC’s Saheli Roy Choudhury contributed to this report.