China has emerged victorious in a nearly three-year-long dispute with Australia at the World Trade Organization (WTO) over tariffs imposed on steel products, marking a significant development amidst strained bilateral relations. The dispute, which originated during a period of heightened tensions between the two nations, saw Australia’s acceptance of the WTO’s ruling on Wednesday.
Initiated in June 2021, Beijing’s complaint to the WTO pertained to Australia’s imposition of additional duties on specific imports from China, including railway wheels, wind towers, and stainless steel sinks. Trade in these products amounted to 62 million Australian dollars ($40.4 million) in 2022.
Following deliberations held in Geneva, Switzerland, on Tuesday, the WTO panel overseeing the case concluded that Australia’s Anti-Dumping Commission had acted inconsistently with certain provisions of the anti-dumping agreement.
In response to the ruling, Australia’s Trade Minister, Don Farrell, affirmed the country’s commitment to the WTO’s decision and endorsed a rules-based trading framework. Farrell stated on Wednesday, “Australia will engage with China and take steps to implement the panel’s findings,” underscoring Canberra’s dedication to upholding the dispute settlement mechanism of the WTO.
Trade tariffs have remained a contentious issue between China and Australia, particularly after China imposed sanctions on Australian goods in 2020 amid strained bilateral relations. While most tariffs have been lifted as relations improved, duties on certain items, including wine, rock lobster, and select abattoirs, persist.
In April, Australia opted to suspend a complaint filed with the WTO in an effort to restore access to the Chinese market for Australian barley, which had been subject to tariffs. This move was perceived as part of the Australian government’s strategy to mend relations with Beijing.
Moreover, Australia halted another WTO dispute against China concerning sanctions on Australian wine, valued at approximately 1.1 billion Australian dollars ($720 million), in exchange for a review by China, expected to conclude by the end of March.
