WTO Creates Panel In China-Australia Dispute Over Barley Tariffs

The World Trade Organization has agreed to a dispute settlement in a conflict over China's antidumping and countervailing duties on Australian barley, according to a trade source attending the meeting.

China's commerce ministry announced antidumping tariffs on Australian wine imports ranging from 116.2% to 218.4% in March, with the measures set to last five years. In 2020, it launched an antidumping investigation into Australian wine imports and imposed preliminary duties.

Separately, following a different investigation into Australian wine subsidy schemes, China imposed additional temporary tariffs of around 6.3% to 6.4% in December.

Last year, Australia filed a formal appeal with the WTO seeking a review of China's decision to levy high tariffs on Australian barley imports, one of several current points of contention between the two countries.

"The dispute settlement body agreed to the establishment of a panel," said the Geneva-based trade source who attended the private meeting.

Australian Trade Minister Dan Tehan previously said a request for a panel would be made. China rejected its first request for adjudication last month. He did, however, say Australia was "open to further discussions with China with a view to resolving this issue."

According to the trade source, China said at the meeting it was confident its duty measures would be found to be consistent with WTO requirements. It also remained open to further discussions on the subject.

The panel usually concludes within six months, but its decisions are subject to appeal.

According to WTO data, Australia's formal trade dispute submission in December was one of just five such requests made in 2020, down from 20 the previous year.

The appellate body of the WTO is currently paralyzed after the administration of former U.S. President Donald Trump blocked appointments of new judges.

Meanwhile, Tehan said Australia was looking for new markets for its products. It is currently in talks with the U.K. and the European Union on a free trade agreement.

"We are always looking as well at other opportunities that we can pursue, whether it be through our existing trading partners or by opening up new avenues to be able to explore," Tehan said.