Taking China to the World Trade Organisation plants a seed. It won’t be a quick or easy win

Australia is reportedly ready to initiate its first litigation against China at the World Trade Organisation.

China has this year taken punitive action against imports of Australian coal, wine, beef, lobster and barley.

It is the five-year 80.5 per cent barley tariff China imposed in May that Australia will take to the World Trade Organisation. More than half of all Australian barley exports in 2019 were sold to China, worth about A$600 million a year to Australian farmers.

Chinese authorities began an anti-dumping investigation into Australian barley in November 2018. Anti-dumping trade rules are meant to protect local producers from unfair competition from “dumped” imported goods.

Dumping occurs where a firm sells goods in an overseas market at a price lower than the normal value of the goods. China calculated the normal value of barley using “best information available” on the grounds that Australian producers and exporters failed to provide all information Chinese investigators requested.

The barley tariff will last for five years unless Chinese investigators initiate a review and decide to extend it beyond 2025.

What can Australia hope to achieve from a WTO dispute?

Not a quick and easy win. A formal resolution will likely take years. But it plants a seed, starting a structured process for dialogue. This is an important step in the right direction.

ABC.net.au

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