Australia’s Ongoing Trade Dispute with China
Australian exporters continue to face challenges amidst China’s diplomatic freeze. The situation remains unresolved, leaving many exporters uncertain about the outcome.
While there have been some positive developments, such as Beijing’s decision to resume trade in coal, barley, timber, and select meatworks, the overall trade relationship is still strained.
Unfortunately, products like wine, lobster, and major beef exports from Australia are still caught in the crossfire of this diplomatic conflict that began during the early stages of the COVID-19 pandemic.
Australian Exporters and China’s Diplomatic Freeze
China has not provided any indication of when it will resume imports of Australian rock lobster, leaving exporters in uncertainty. If and when trade with China resumes for these exporters, it is expected to bring significant changes to the marketplace.
Several of Australia’s major meat exporters are approaching a four-year mark since China banned their beef due to labeling concerns. The ban affected four meatworks from Queensland and NSW, which represented over a third of Australia’s beef exports to China, with a trade value of $3.5 billion that year.
Since then, more beef exporters have faced blocks with no clear timeline on when trade could potentially resume. In 2020, Australian lobsters were also halted over quarantine worries, despite speculations of a $700-million-a-year trade set to resume to China last March, which has not materialized yet.
Concurrently, the wine grape growing regions in Australia are grappling with crisis talks following China’s decision in 2020 to impose tariffs, leading to a billion-dollar loss in business annually. Wine grape growers, like Simi Gill in South Australia’s Riverland, are struggling to cover costs as low prices persist.
Simi Gill highlighted the challenges faced by grape growers, mentioning the drastic drop in grape prices from $650 a tonne to as low as $120 a tonne. The industry, which once sold over $1 billion of wine to China, saw a significant decline to around $10 million last year.
The Australian wine industry is now seeking government assistance to support growers affected by the grape glut. The government’s efforts to address the issue include suspending a complaint at the World Trade Organization while awaiting China’s tariff review.
There is hope for a resolution similar to the barley tariffs case, where a Chinese review led to the end of tariffs and resumed shipments. Grape growers and the Australian government are optimistic about a positive outcome for the wine industry.
Before China imposed tariffs on Australian wine, the trade was valued at over $1 billion annually. However, unlike barley, which is utilized in China’s manufacturing sector, Australian wine imports create less employment in China and pose competition for the domestic wine industry.
With China’s economic slowdown, the marketplace may not be as lucrative as before, impacting all Australians involved in selling to China. Australia’s Trade Minister Don Farrell has been actively engaging with Chinese counterparts to advocate for the interests of Australian exporters.
In the Riverland, wine grape grower Simi Gill appreciates the government’s efforts to resolve the trade issues but expresses concerns about the timing and effectiveness of the interventions. She emphasizes the need for broader awareness among Australians about the ongoing trade challenges.
The trade war has pushed the wine industry to a critical point, raising uncertainties about its future and the potential return of stability in the market.
For more information, please visit our site 60time.com, and don’t forget to follow us on social media at Facebook.
