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
COP29 climate summit draft proposes rich countries pay $250 billion per year
The draft finance deal criticised by both developed and developing nations.
Bomb squad sent to London's Gatwick Airport after terminal evacuation
This was following the discovery of a suspected prohibited item in luggage.
Kelantan urges caution amidst northeast monsoon rains
Kelantan has reminded the public in the state to refrain from outdoor activities with the arrival of the Northeast Monsoon season.
Former New Zealand PM Jacinda Ardern receives UN leadership award
Former New Zealand prime minister Jacinda Ardern was given a global leadership award by the United Nations Foundation.
ICC'S arrest warrants for Netanyahu, Gallant an apt decision - PM
The decision of the ICC to issue arrest warrants against Benjamin Netanyahu and Yoav Gallant is apt, said Datuk Seri Anwar Ibrahim.
KTMB provides two additional ETS trains for Christmas, school holidays
KTMB will provide two additional ETS trains for the KL Sentral-Padang Besar route and return trips in conjunction with the holidays.
BNM'S international reserves rise to USD118 bil as at Nov 15, 2024
Malaysia's international reserves rose to US$118.0 billion as at Nov 15, 2024, up from US$117.6 billion on Oct 30, 2024.
Findings by dark energy researchers back Einstein's conception of gravity
The findings announced are part of a years-long study of the history of the cosmos focusing upon dark energy.
NRES responds to Rimbawatch press release on COP29
The Ministry of Natural Resources and Environmental Sustainability (NRES) wishes to offer the following clarifications to the issues raised.
Online Safety Bill and Anti-Cyberbullying Laws must carefully balance rights and protections
The Online Safety Advocacy Group (OSAG) stands united with people in Malaysia in the fight against serious online harms.
Malaysia's inflation at 1.9 pct in Oct 2024 - DOSM
Malaysia's inflation rate for October 2024 has increased to 1.9 per cent, up from 1.8 per cent in September this year.
Saudi Arabia showcases Vision 2030 goals at Airshow China 2024
For the first time, Saudi Arabia is participating in the China International Aviation & Aerospace Exhibition held recently in Zhuhai.
King Charles' coronation cost GBP 71mil, govt accounts show
The coronation of Britain's King Charles cost taxpayers GBP72 million (US$90 million), official accounts have revealed.
Couple and associate charged with trafficking 51.9 kg of meth
A married couple and a man were charged in the Magistrate's Court here today with trafficking 51.974 kilogrammes of Methamphetamine.
PDRM to consult AGC in completing Teoh Beng Hock investigation
The police may seek new testimony from existing witnesses for additional insights into the investigation of Teoh Beng Hock's death.
Thai court rejects petition over ex-PM Thaksin's political influence
Thailand's Constitutional Court rejects a petition seeking to stop Thaksin Shinawatra from interfering in the running the Pheu Thai party.
Abidin takes oath of office as Sungai Bakap assemblyman
The State Assemblyman for Sungai Bakap, Abidin Ismail, was sworn in today at the State Assembly building, Lebuh Light.
UPNM cadet officer charged with injuring junior, stomping on him with spike boots
A cadet officer at UPNM pleaded not guilty to a charge of injuring his junior by stomping on the victim's stomach with spike boots.
How Indian billionaire Gautam Adani's alleged bribery scheme took off and unraveled
The indictment was unsealed on Nov. 20, prompting a $27 billion plunge in Adani Group companies' market value.
Elon Musk blasts Australia's planned ban on social media for children
Several countries have already vowed to curb social media use by children through legislation, but Australia's policy could become one of the most stringent.