In a significant diplomatic move, Australian Prime Minister Anthony Albanese confirmed on Sunday that he will embark on a groundbreaking journey to China from November 4 to 7. The purpose of this historic visit is to meet with Chinese President Xi Jinping and Premier Li Qiang, with the goal of strengthening ties with Australia’s most prominent trading partner.
This landmark announcement follows a significant breakthrough reached on Saturday in resolving the longstanding trade dispute between the two nations concerning wine tariffs, which had taken a toll on Australia’s wine industry.
China’s Commerce Ministry disclosed on Sunday that both parties have reached a consensus to settle the World Trade Organization (WTO) wine dispute. In addition, they also made progress on another trade dispute concerning Australian duties on Chinese wind towers.
Mending relations with China has been at the forefront of Albanese’s agenda since assuming office in 2022. “It is important that we stabilize our relationship with China,” stated Albanese.
During the upcoming visit, the leaders plan to deliberate on a range of crucial issues, including economic cooperation, climate change, and enhancing people-to-people links, as per a statement from the Australian Prime Minister: “I look forward to further engaging with President Xi and Premier Li in Australia’s national interest.”
Albanese, speaking from Canberra, revealed that on Saturday, Australia reached an agreement with China to address its WTO dispute over wine. This development potentially paves the way for the resumption of wine imports worth approximately $800 million annually, which had been disrupted by the imposition of duties in 2021. “We have agreed on the issue of wine for there to be a review of China’s position on wine tariffs to be conducted over the next months,” Albanese told reporters. “We will suspend our action before the WTO, but we’re very confident that this will result in once again Australian wine, a great product, being able to go to China free of the tariffs.”
Albanese did not explicitly mention the duties on wind towers during his remarks. Nevertheless, on October 16, the Australian Anti-Dumping Commission recommended the lifting of anti-dumping measures on Chinese wind towers, although no final decision has been reached yet.
In response to these developments, China’s Commerce Ministry conveyed its willingness to collaborate. They stated, “China and Australia are important trading partners of each other, and we are willing to work with the Australian side to continue to meet each other halfway through dialogue and consultation.” The ministry further noted that friendly consultations between the two nations have been ongoing concerning various items of mutual concern within the framework of the WTO. They expressed their willingness to “jointly promote the stable and healthy development of bilateral economic and trade relations.”
These announcements mark the latest signs of a diplomatic thaw, which has already seen China lift restrictions on imports of Australian coal, timber, and barley. These restrictions had been imposed in response to Australia’s call for an inquiry into the origins of COVID-19. The imposition of duties of up to 218% on most Australian wines in March 2021 led to a sharp decline in trade, significantly affecting the country’s winemakers.
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