WTO faults Australian inquiry into trade dispute with China

A World Trade Organization panel has ruled that some Australian measures against Chinese imports were not in line with its rules.

Canberra’s investigations into dumping and subsidising of railway wheels, stainless steel sinks and wind towers were flawed, the ruling said.

It follows a complaint from China over Australian anti-dumping and anti-subsidy measures three years ago, in the midst of a fierce bilateral political and trade spat.

In all three cases, WTO judges found fault with how Australia conducted its investigation, specifically on how it compared the prices of the goods sold domestically in China and their prices abroad.

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The ruling recommends that Australia amend or withdraw the measures, although some have already been resolved as part of a broader thaw in relations between the countries.

Australia announced last week that it would not renew trade remedy measures against imports of Chinese wind towers when they expire in April.

Last April, the countries suspended a WTO dispute over Chinese duties on Australian barley after Beijing decided to remove its 80.5 per cent anti-dumping and countervailing duties on the grain.

Six months later, a panel adjudicating whether China’s duties on Australian wine was also suspended, with the two governments negotiating a “pathway towards resolution of the dispute”.

As it stands, those duties remain in place, but Chinese Foreign Minister Wang Yi said during a visit to Australia last week that a review of the tariffs was ongoing, with an outcome expected by the end of March.

During Wang’s visit, his Australian counterpart Penny Wong said she hoped that tariffs on beef and a ban on lobster imports would