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WTO panel to examine Australia-China wine dispute

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© Reuters. FILEPHOTO: A store in Beijing selling import wine, November 27, 2020. REUTERS/Florence Lo

GENEVA, (Reuters) – The World Trade Organization agreed on Tuesday to create a panel that would examine China’s impositions of duties on Australian wines imported from Australia. This was according to a trade source.

According to a source, Tuesday’s meeting of the dispute settlement committee was closed. It agreed with Australia’s second request, after it had been blocked in September by China.

In recent months, trade tensions have increased between Australia and Australia’s biggest trading partner. Washington expressed its support for Canberra.

China has placed tariffs on Australian wine, barley, and restricted imports of beef, coal, and grapes from Australia.

Australia’s delegate explained the reason for seeking a panel and expressed dismay that China hadn’t taken steps to address its concerns.

China’s delegation stated in a statement that it regretted Australia’s decision to support its request for a panel regarding the dispute.

China will defend its legitimate measures during the proceeding and believes that those challenged are compatible with WTO rules.

WTO panels usually deliberate for six months prior to preparing their ruling. The decision can be appealed.

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