Australian WTO move ‘ baseless’
▶ Chinese wine industry diversifies sources of supplies
Australia’s appeal to the WTO over China’s anti- dumping sanctions on Australian wine drew a strong backlash on Sunday from Chinese business representatives and experts, who said that Australia’s baseless complaints will only exacerbate tensions between the two countries.
Meanwhile, Chinese wine traders are accelerating their search for new alternatives to Australian wine to fend off future risks of uncertainty in trade tensions, as Canberra continues on a hostile path with Beijing.
The Australian government filed a complaint on Saturday to the WTO over China’s decision to impose import tariffs of up to 220 percent on Australian wine, according to media reports.
It was the second time in six months that Australia field complaints against China with the international trade organization, after Australia’s first appeal on China’s imposition of tariffs on its barley imports last year.
While the Australian government has the right to file the case at the WTO, Australian wine dumping in China is evident and there is very little chance for it to win such a groundless appeal, Chinese wine industry insiders said.
China’s anti- dumping actions were based on solid facts and the Australian government will not win the case, Huo Xingsan, secretary general of the Wine Branch of the China Alcoholic Drinks Association ( CADA), the organization that originally brought up the Australian wine dumping case on behalf of the interests of the Chinese wine industry, told the Global Times on Sunday.
“The dumping of Australian wine has jeopardized the fair play of the domestic wine industry, and it hurts the wide interests of domestic winemakers and grape growers,” said Huo.
Industry insiders said that the Australian government’s latest move, along with many other tough and groundless attempts against China, was “sprinkling salt on the wound” of already soured bilateral relations and adding to the risks of uncertainty for the already fragile trade relationship – which is prompting them to find alternative sources.
Le- Lis, a Guangzhou- based wine trading company, is diversifying its sources of wine amid the tariffs.
A manager with Le- Lis surnamed Lin told the Global Times that businesses can still import Australian wine, “but there are no profits in selling it.”
Australia fully understands that it would take the WTO two to four years to process the wine trade dispute before reach any resolution, and Australian’s latest move harbors the ulterior motive to politicize and weaponize the trade dispute to slander China on an international platform, Chen Hong, a professor and director of the Australian Studies Center at the East China Normal University, told the Global Times on Sunday.
“Any sovereign government in the world has the responsibility to ensure sound development of their domestic markets and protect domestic industries against unfair practices such as dumping and subsidies by international competitors, and to vilify such rightful measures as coercion and bullying is simply a malicious attempt as part of a malign ‘ scare and smear’ campaign against China,” Chen said.