A new report released Wednesday by the Australian Strategic Policy Institute (ASPI) urges Australia to take action on China’s coal export ban to avoid similar future attacks on Australia’s iron ore trade. ..
“If there is an iron ore excess in the next few years, Australian miners could be vulnerable to the same kind of discriminatory behavior that China has done against Australian coal.” And the report (pdf) Said.
“Australia could make it more difficult for China to take such steps by now taking action against China over Australia’s coal ban.”
Iron ore prices have reached a record high of around $ 230 / ton since Australia’s May budget, and have since fallen below $ 100 / ton as Beijing curbed price restraints in the steel industry.
The report’s author, international economics expert David Yuren, argued that the WTO rules were ignored by China, but were Australia’s “best and only defense.”
“WTO dispute resolution can be protracted for years, but there is precedent for China to comply with unfavorable rulings,” he said, and Beijing abolished rare earth export controls and obligations in 2015 after WTO regulations. I quoted the example.
“Importantly, the WTO’s success in coal proceedings could set a precedent for similar discrimination against Australian iron ore.”
Australia has taken China to the WTO over a trade dispute over wine and barley.
As former resource minister Senator Matt Canavan suggested, Uren warns against imposing a surcharge on the sale of iron ore to China to cover losses from Beijing’s disciplinary trade barriers. bottom. By seeking ores, alternative supplies and limiting their steel production.
China’s plans to diversify its iron ore supply from Australia are alleged to hurt the economy, especially Western Australia, which relies heavily on this export.
However, the report also revealed that efforts to curb China’s steel production have failed over the past five years and local governments are ignoring orders from the central government.
“Australia’s supply needs can never be completely eliminated,” he said, as Australian iron ore is the cheapest and closest high-quality iron ore for Chinese steel mills.