Former trade minister Simon Birmingham has described China taking Australia to the World Trade Organization (WTO) for anti-competitive behaviour as "more petty than provocative".
Key points:
- China's complaint relates to Australian exports of railway wheels, stainless-steel sinks and wind towers
- Simon Birmingham says Australia's trade systems are transparent
- Trade Minister Dan Tehan says the government will defend its position
China lodged a complaint with the WTO yesterday against Australian duties on Chinese railway wheels, stainless-steel sinks and wind towers.
The complaint, which is about measures introduced in 2014, 2015 and 2019, was launched just days after the federal government took similar action against China over tariffs put on Australian wine.
Senator Birmingham was the trade minister before current minister Dan Tehan, before being promoted to Finance Minister at the end of last year after Mathias Cormann's retirement.
He oversaw the portfolio during last year's escalating trade tensions with China that saw large tariffs imposed on Australian wine and Australian exports of lobsters and timber held up at the Chinese border.
It was under Senator Birmingham that Australia first took action against China when the government referred it to the WTO over the barley tariffs.
"Our systems our processes are strong ones, are transparent ones and stand in contrast to the type of approach that was used in China's decision against our wine and barley," Senator Birmingham said.
"In a diplomatic context it's disappointing that Australia was not given advanced notice of China's decision … we certainly gave China advanced notice."
No immediate impact on businesses
Mr Tehan reiterated the government would "vigorously" defend its position against China.
He said despite the complaint now being lodged, there would be no immediate impact on Australian businesses as a result.
"Obviously, in the end, the impact would depend on what the outcome of the dispute settlement was but that could take anywhere between two to four years," he said.
The Trade Minister said normal processes were not followed with the complaint being made without any warning from China or after being raised through the WTO committee beforehand.
Mr Tehan again would not comment on why China made the complaint, but repeated that the government wanted "constructive engagement" with Beijing.
He confirmed there had still been no communication after his office reached out to his Chinese counterpart in January.