Australia’s trade minister said Tuesday that his country does not want a trade war with China, but maintained Beijing had erred by imposing stiff tariffs on Australian barley in what is widely seen as punishment for advocating an investigation into the coronavirus pandemic.
China effectively ended imports of Australian barley by putting tariffs of more than 80% on the crop, accusing Australia of breaching World Trade Organization rules by subsidizing barley production and selling the crop in China at below production costs. The move came a week after China banned beef imports from Australia’s four largest abattoirs over labeling issues.
“Australia is not interested in a trade war. We don’t pursue our trade policies on a tit-for-tat basis,” Trade Minister Simon Birmingham told reporters. “We operate according to the trade rules that we strongly support.”
Birmingham said China “has made errors of both fact and law” in applying WTO rules, adding that there was no evidence that Australia was engaged in dumping of products.
The trade dispute has coincided with Australia's push for an international investigation into the origins of the coronavirus pandemic and responses to it. Beijing has denied they are related.
The World Health Organization bowed to calls Monday from most of its member states to launch an independent probe into how it managed the international response to the virus, which was first found in China late last year. The evaluation would stop short of looking into contentious issues such as the origins of the virus.
Chinese President Xi Jinping said China supports the idea of a comprehensive review of the global response to COVID-19 and it should be “based on science and professionalism led by WHO, and conducted in an objective and impartial manner.”
Australia has been seen as a leader in rallying global support for an inquiry, attracting Chinese criticism that it is parroting the United States and inviting a Chinese boycott of exports and services.
The Chinese Embassy in Australia said Tuesday that the WHO consensus reached by its decision-making body, the World Health Assembly, in Geneva did not vindicate Australian calls for an investigation.
“The draft resolution on COVID-19 to be adopted by the World Health Assembly is totally different from Australia’s proposal of an independent international review,” an embassy statement said.
“To claim the WHA’s resolution a vindication of Australia’s call is nothing but a joke,” the statement added.
Weihuan Zhou, a University of New South Wales international trade expert, said China began its barley investigation in 2018 in response to Australia imposing anti-dumping duties on Chinese steel and aluminum.
But Zhou said he suspects the Chinese decisions on beef and barley are because of Australia’s advocacy for the coronavirus investigation.
His suspicion was bolstered by China’s decision to set the anti-dumping tax at 73.6% — far higher than the 56% that Chinese industry had requested. Beijing also imposed a 6.9% anti-subsidy tax.
Birmingham said he understood why people drew the link between trade and Australia’s coronavirus stance given Chinese Ambassador Cheng Jingye’s “unhelpful comments” in a newspaper interview last month.
Cheng told The Australian Financial Review that Australia might face a Chinese boycott of its tourism and exports of wine, beef and other goods if the government pressed for a coronavirus inquiry.
China is the No. 1 market for Australian beef, accounting for about 30% of exports.
“Others can debate whether or not there's a linkage,” Birmingham said.
Beijing has regularly used access to its huge market as leverage against governments from Norway to Canada in political disputes over the past decade. Chinese officials routinely refuse to confirm a trade disruption is related to a political clash but make it clear Beijing wants concessions.
Australian barley farmer Andrew Weidemann said the tariff barrier “stops the trade completely” with Australia’s biggest customer.
“It’s a really bitter pill to swallow,” Weidemann said. “It’s a real dent in our economy and it will have a big impact.”
AP Newsroom
Tue May 19 2020
In this May 14, 2019 photo, packages of frozen beef filets from Australia, left, the United States, center, and Canada, right, are for sale at a supermarket in Beijing - AP Photo/Mark Schiefelbein
Canadians cancel trips, ban American booze after Trump's tariffs
The perceived act of economic warfare on a country that is so close to the US culturally and geographically still came as a shock to many Canadians.
Schools shut, more flights scheduled as quakes constantly shake Santorini
Tremors have been recorded between the volcanic islands of Santorini and Amorgos in the Aegean Sea since Friday.
MOH detects over 800 health cases among flood evacuees in Sabah, Sarawak
MOH says the cases include acute respiratory tract infection, skin infection, acute gastroenteritis and conjunctivitis.
Car bomb kills 15 in northern Syria, deadliest since Assad toppled
The victims were agricultural workers and the death toll was likely to increase, according to a civil defence official.
[OPINION] Future of chemical industry: Leveraging data to drive sustainability
Data-led technologies are driving efficiency, supporting greener approaches, and advancing the circular economy in the chemicals industry.
Samsung chief Jay Y. Lee found not guilty in merger case
The Seoul High Court upheld the lower court's ruling dismissing all the charges from a case involving a 2015 merger.
Musk says shutting down USAID in government cost-cutting drive
USAID is the world's largest single donor.
UK makes use of AI tools to create child abuse material a crime
Britain becomes the first country in the world to introduce the new AI sexual abuse offences.
Taiwan's Barbie Hsu, hugely popular in East Asia, dies of flu
Taiwanese actor Barbie Hsu has died of influenza-induced pneumonia at 48, according to her sister.
Sultan Ibrahim: Parliament not a place for hostility, insults or slander
Honourable Members should be as a bastion of national unity, not agents of division among the people, says His Majesty Sultan Ibrahim.
[COLUMNIST] Egypt, Sinai & Israel's loss of strategic initiative
Israel still hasn't regained any meaningful strategic initiative post-1982 withdrawal from the Sinai.
DC official: 55 victims identified in Washington helicopter plane collision
The Army Corps of Engineers is surveying and preparing to begin significant salvage operations to remove the wreckage from the river.
Beyonce wins top Grammys prize for first time with 'Cowboy Carter'
Beyonc triumphs over Taylor Swift, Billie Eilish, and others to win trophy that had eluded her, despite holding the most lifetime Grammys.
Chappell Roan takes home best new artist Grammy
Chappell Roan, was nominated in six Grammy categories this year, including song of the year for "Good Luck, Babe!"
Musk to give update on reform effort amid questions about his power
Elon Musk's access to the Treasury system raises concerns about how he will use the information.
King ograces opening of 15th Parliament's fourth session
This marks Sultan Ibrahim's second Parliament opening ceremony since being sworn in as the 17th Yang di-Pertuan Agong on Jan 31, 2024.
Trump says Americans could feel 'pain' in trade war with Mexico, Canada, China
Donald Trump also says tariffs would "definitely happen" with the European Union, but did not say when.
Israeli military blows up buildings in West Bank refugee camp
Israel's military dismantles 23 structures in the northern West Bank, citing explosives labs, weapons, and observation posts.
Beyonce, Sabrina Carpenter win Grammys as musicians honor Los Angeles
Beyonce's "Cowboy Carter" is also in the running for the night's top Grammy prize of album of the year.
Ringgit opens slightly lower against US dollar
Dr Mohd Afzanizam Abdul Rashid says DXY has gained momentum after Donald Trump issued an executive order to raise import tariffs.