Australian PM says China coal ban would breach WTO rules

Australia’s prime minister said Tuesday that China would be violating World Trade Organization rules and a bilateral free trade agreement if it banned Australian coal.Prime Minister Scott Morrison was replying to a report in China’s state-owned Global Times newspaper that said Beijing’s main planning agency had given power plants approval to import coal without restrictions, except for Australian coal. Morrison said he was treating the report as “media speculation” because the Chinese government had yet to clarify its position.

“If that were the case, then that would obviously be in breach of WTO rules,” Morrison told reporters. “It would be obviously in breach of our free trade agreement and so we would hope that’s certainly not the case.” China has targeted various Australian exports as relations with the country have deteriorated after Australia called for an independent inquiry into the coronavirus pandemic. Asked about the report, Chinese Foreign Ministry spokesperson Wang Wenbin gave no specifics but said China had “recently taken measures against some imported Australian products in accordance with law and regulations.”China has consistently said Australia is entirely responsible for disruptions in economic and political ties motivated by what it sees as anti-Chinese bias among Australian politicians, civic leaders and media outlets.

Wang said China would “never accept” accusations of unfair trade practices, and accused Australia of having politicized bilateral exchanges in trade, investment, science and technology, while targeting Chinese companies with increased security checks on investments. Coal and iron ore, Australia’s most lucrative exports, appear to have suffered due to Chinese barriers, while wine, lumber and other products have also seen their Chinese markets reduced.Trade Minister Simon Birmingham said Australia was close to finalizing a complaint to the World Trade Organization over Chinese tariffs imposed on barley.