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China, Australia agree to move ahead with WTO wine-tariff dispute that has cost 100 million litres in sales

  • Anti-dumping duties of between 116.2 and 218.4 per cent have been imposed on Australian wines in containers of two litres or less since March
  • The duties are set to be applied for five years, but the World Trade Organization (WTO) agreed in October to establish a dispute-settlement panel

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Anti-dumping duties of between 116.2 and 218.4 per cent have been imposed on Australian wines in containers of two litres or less since March. Photo: EPA-EFE

China’s decision to allow its dispute with Australia over Beijing’s import tariffs imposed on Australian wine – costing the industry 100 million litres in sales – highlights both a willingness and reluctance to adhere to World Trade Organization (WTO) principles, according to a trade expert.

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Canberra lodged a formal complaint with the WTO in June after China imposed duties of between 116.2 and 218.4 per cent on Australian wine in containers of up to two litres in March.
The WTO agreed to establish a dispute-settlement panel to address Canberra’s complaint in October.

Both China and Australia can contest duties via the global trade body, although the dispute court – the WTO Appellate Body – is currently crippled and sits empty following repeated blocks by the United States to appoint new judges.

The multiparty interim appeal-arbitration arrangement (MPIA), set up last year, will hear complaints in the interim, and a statement from the WTO’s Dispute Settlement Body on Monday confirmed that both China and Australia had agreed on a timeline.
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