China Triumphs in WTO Dispute Against Australia on Steel

China emerged victorious in a nearly three-year WTO (World Trade Organization) dispute against Australia regarding tariffs imposed on certain steel products, a conflict that surfaced during a period of strained bilateral ties. Australia’s Trade Minister, Don Farrell, acknowledged the decision on Wednesday, signaling the government’s acceptance of the WTO’s findings.

The dispute was initiated by Beijing in June 2021, challenging Australia’s additional tariffs on Chinese imports including railway wheels, wind towers, and stainless steel sinks, with the trade of these items amounting to 62 million Australian dollars ($40.4 million) in 2022.

A WTO panel in Geneva determined on Tuesday that the procedures followed by Australia’s Anti-Dumping Commission in imposing these tariffs violated certain aspects of the anti-dumping agreement.

Minister Farrell expressed Australia’s compliance with the WTO’s determination, emphasizing the country’s commitment to a regulated trade system and its intention to collaborate with China to address the panel’s conclusions.

He highlighted Australia’s dedication to a functional WTO dispute resolution mechanism to safeguard the trading rights and responsibilities of its members.

The imposition of trade tariffs had been a contentious issue between China and Australia, notably after China introduced several sanctions on Australian exports in 2020, which adversely affected the Australian economy by an estimated 20 billion Australian dollars ($13 billion).

Although many of these sanctions have been relaxed, leading to improved relations, tariffs on Australian wine, rock lobster, and certain meat processing facilities are still in effect.

In efforts to mend its relationship with China, Australia paused a WTO complaint in April hoping to re-enter the Chinese market with its barley, affected by the 2020 sanctions. This move was perceived as part of the new Australian government’s strategy to reconcile with Beijing.

Furthermore, Australia suspended another WTO challenge concerning sanctions on its wine industry, valued at approximately 1.1 billion Australian dollars ($720 million), in return for a review by China set to conclude by the end of March.