The investigation has sent shock waves through the wine industry and beyond.
Broadly speaking, anti-dumping rules prohibit producers from selling anything for less than its market value.
It says this is due to the sale of Australian wine being dumped (sold at less than market prices) in China. It has asked for the imposition of an anti-dumping tariff of 202.70%, which would triple the price at which Australian wine is sold.Ministry of Commerce
The proposed duty would effectively exclude Australian wine from the Chinese market.
This comes after a highly publicised interview in April in which China’s Ambassador to Australia Jingye Cheng said the Chinese public was “frustrated, dismayed and disappointed” at Australia’s stance on a number of issues and might boycott Australian goods and services.
Anti-dumping investigations turn on highly technical data, often obtainable only through the analysis of confidential business information.
This latest probe can be looked at in two ways:
1. Tit for tat
One is that it is just a tit for tat action following Australian anti-dumping measures against Chinese electric cables, wind towers, glass, A4 copy paper, chemicals, herbicides and aluminium products and steel.
Australian anti-dumping and countervailing measures by country, March 2020
- ^ under investigation (www.mofcom.gov.cn)
- ^ industry body claims (images.mofcom.gov.cn)
- ^ Ministry of Commerce (images.mofcom.gov.cn)
- ^ China-Australia Free Trade Agreement (www.dfat.gov.au)
- ^ nearly 40% (www.wineaustralia.com)
- ^ highly publicised interview (au.china-embassy.org)
- ^ call for an investigation (www.foreignminister.gov.au)
- ^ Australia’s criticism (www.abc.net.au)
- ^ decision to ban (www.internationalaffairs.org.au)
- ^ China used anti-dumping rules against us because what goes around comes around (theconversation.com)
- ^ Australian anti-dumping measures (www.industry.gov.au)
- ^ against China (www.industry.gov.au)
- ^ Anti-Dumping Commission, March 31, 2020 (www.industry.gov.au)
- ^ normal anti-dumping investigation (www.washingtonpost.com)
- ^ particular market situation (www.springerprofessional.de)
- ^ Australia uses (www.dfat.gov.au)
- ^ Chinese investors (www.sbs.com.au)
- ^ coal (www.abc.net.au)
- ^ barley (www.afr.com)
- ^ beef (www.abc.net.au)
- ^ Vital Signs: Australian barley growers are the victims of weaponised trade rules (theconversation.com)
- ^ quality (www.news.com.au)
- ^ hygiene (www.smh.com.au)
- ^ travel warnings (www.abc.net.au)
- ^ 18 months (images.mofcom.gov.cn)
- ^ China might well refuse to take our barley, and there would be little we could do (theconversation.com)
- ^ iron ore (www.scmp.com)
- ^ far more (www.australiachinarelations.org)
Authors: Markus Wagner, Associate Professor of Law, University of Wollongong