Home World Australia and China Agree to Suspend WTO Wine Dispute

Australia and China Agree to Suspend WTO Wine Dispute

Australia and China Agree to Suspend WTO Wine Dispute

The Prime Minister of Australia, Anthony Albanese, announced that he will go to China from November 4th to 7th to meet with President Xi Jinping and Premier Li Qiang. The purpose of this trip is to improve the relationship between Australia and China.

This is a significant event because it’s the first time an Australian leader has visited China since 2016. The trip comes after a recent breakthrough in a dispute between the two countries over tariffs on Australian wine, showing that their relations are getting better.

Anthony Albanese became the Prime Minister in 2022, and one of his goals is to repair the relationship with China, which had been getting worse over the past few years due to various issues like disputes over a telecoms company called Huawei, concerns about espionage, and the COVID pandemic.

During the visit, the leaders will talk about working together on economic matters, addressing climate change, and improving connections between the people of both countries.

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Albanese is looking forward to these discussions and believes they are in Australia’s best interests.

The Prime Minister also mentioned that Australia has reached an agreement with China regarding their dispute at the World Trade Organization (WTO) about wine. This could lead to the resumption of wine imports from Australia, worth $800 million annually, which were affected by tariffs imposed in 2020.

Albanese explained that there will be a review of China’s position on these wine tariffs in the coming months, and Australia will temporarily halt its WTO action. He is confident that this will allow Australian wine, a high-quality product, to be sold in China without these tariffs.

He emphasized that this deal is not a trade-off for Australia reducing tariffs on certain Chinese imports. It’s about stabilizing the relationship with China.

This move is part of a broader effort to improve relations between the two countries. China has already lifted restrictions on imports of Australian goods like coal, timber, and barley, which are worth billions of dollars.

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In 2020, China imposed high tariffs on Australian wine, causing a significant drop in trade. This was in response to Australia’s call for an investigation into the origins of COVID-19. Most of these trade restrictions have been lifted, but some barriers still remain, including those on lobsters and meat from certain Australian abattoirs.

Before the tariffs, China was the most important export market for Australian winemakers. In 2019, Australia sold approximately $800 million worth of wine to China. Last year, wine exports to China were only worth $11 million.