China has reopened its doors to Australian timber imports after a break of over two years. Timber was among the Australian exports that faced trade barriers imposed by China in 2020, following Australia’s call for an independent inquiry into the origins of the COVID-19 pandemic.
The trade barriers affected several Australian exports, including coal, wine, barley, beef, seafood, cotton, and copper, resulting in an estimated annual loss of $14 billion for Australian exporters.
However, since the center-left Labor Party assumed power a year ago, succeeding nine years of conservative rule, the relationship between the two countries has seen improvement. Recently, Australian coal, cotton, and copper exports to China have resumed.
The Australian timber is going back to China
Chinese Ambassador to Australia, Xiao Qian, announced that the timber ban had been lifted on Thursday, as Australian exporters had addressed China’s quarantine concerns. The Australian government received official notification on Wednesday.
Xiao stated, “So from today on, the Australian timber is going back to China.”
This breakthrough follows Trade Minister Don Farrell’s visit to Beijing over the weekend, where he sought to lift trade barriers, particularly those affecting Australian wine and barley.
Foreign Minister Penny Wong welcomed the reinstatement of timber trade with China, which was valued at $1 billion annually before the ban.
“We are pleased with this development,” Wong expressed during a joint press conference in Manila with her Philippine counterpart Enrique Manalo.She further added, “We do believe that removal of these trade impediments benefits both parties,” referring to China and Australia.
Treasurer Jim Chalmers viewed China’s decision on timber as a step toward the Australian government’s objective of stabilizing the economic relationship with China.”It’s a crucially important market for us, and we want to stabilize the relationship, and any progress in lifting these trade restrictions is welcome,” Chalmers noted.
China stands as Australia’s largest trading partner
The Australian Forest Products Association, representing various forestry and paper industries, also greeted China’s decision.
Joel Fitzgibbon, the association’s chief executive, stated in a press release, “When the ban came into effect more than two years ago, it caused a great deal of upheaval and uncertainty for many timber exporters and the broader forest sector, and this resolution is welcomed.”
China stands as Australia’s largest trading partner, with total two-way trade amounting to $287 billion last year.In April, Australia decided to suspend a complaint to the World Trade Organization in an attempt to reopen the Chinese market for Australian barley.
As part of the agreement, China has agreed to review its decision to impose an 80% tariff on Australian barley. Australia hopes that within a few months, China will lift tariffs on both Australian barley and wine.
