By Elishya Perera
SYDNEY, Australia (CU)_Canada and Russia will join Australia in its litigation against China at the World Trade Organisation (WTO), citing concerns over the wider implications a ruling could have on global barley markets.
Last month, the Federal Government of Australia confirmed that it will appeal to the World Trade Organization (WTO) over tariffs imposed by Beijing on barley imported from Canberra, following an anti-dumping probe initiated by Chinese authorities into Australian barley last year.
Meanwhile, Canada, as one of the top five barley exporters in the world, says it has a “substantial interest” in the ruling due to its high exposure to the Chinese market. In 2019, Canada’s global annual barley exports were valued at CA$700 million, with 71.7 per cent of them being exported to China.
“Given the significant amount of trade in barley between Australia and China, China’s trade remedies measures could have effects on global trade in barley more generally, including impacts on Canadian barley,” Ottawa said in a submission.
Russia, on the other hand, also claims that it has a “substantial trade and systemic legal interest” in the consultations, as the country accounts for 11 per cent of global barley exports.
In November 2018, authorities in Beijing initiated an anti-dumping probe into Australian barley, which examined whether barley was from Canberra was exported at a price lower than the price in the domestic market, as a result of subsidies or tax benefits provided by the Australian government.
After an 18-month investigation, the Ministry of Commerce in Beijing ruled that both dumping and subsidisation had occurred, and in May this year, the authorities imposed a combined 80.5% tariff on Australian barley, which will last for five years.
Although government officials in Canberra attempted for months to discuss and negotiate the matter, they were unable to even get in contact with their Chinese counterparts.
And in December last year, then-Trade Minister Simon Birmingham announced Australia would launch an official dispute via the WTO, and in its submission, the Pacific island nation cited over 30 different issues regarding how the authorities in Beijing handled the anti-dumping investigation as well as how the tariffs were implemented.
Some of the claims made by Australia included that China did not provide “all interested parties a full opportunity” to defend their interest, and alleged shortcomings in the investigation.
“China initiated investigations without sufficient evidence, China failed to examine or review the accuracy and adequacy of the evidence provided in the application, and China failed to reject the application or terminate promptly the investigation given the lack of sufficient evidence …” Canberra said its submission.
These tariffs on Australian barley were imposed not long after Chinese Ambassador Cheng Jingye warned Canberra of potential economic sanctions against the country following Australian Prime Minister Scott Morrison’s call for an investigation into the origins of COVID-19, which first emerged from Wuhan.
Apart from tariffs on barley, Beijing also initiated sanctions against beef, lamb, coal, timber, cotton and lobster imported from Australia.
