Australia ramps up its row with Canada over alleged discriminatory practices
Australia’s trade dispute with Canada over unfair treatment of Australian wine exports has escalated, with the federal government ramping up the row by asking the World Trade Organisation to settle the dispute.
Australia alleges that that Canada's national and several provincial governments have imposed additional taxes on imported wine or restricted access to Australian wine, with British Columbia going so far as to ban imported wine being sold at grocery stores.
"We are disappointed that Canada has not taken concrete action to respond to our concerns, which unfairly restricts Australia's wine trade, and is inconsistent with Canada's WTO obligations," said trade minister Steven Ciobo. "Wine is an important export for Australia and helps create and support Australian jobs. The Turnbull government will stand up for our producers and not allow other countries to discriminate against us, costing us exports and potentially jobs.
The Winemakers' Federation of Australia backed the government’s action against Canada and its alleged discriminatory measures. “The request to establish a panel is a vital step to ensuring meaningful outcomes are achieved and highlights this and the value of the WTO system in resolving trade disputes,” said the WFA’s chief executive Tony Battaglene, pointing out that Canada is an important market for Australian wine being the fourth largest by volume and value ($187m).
“We need to ensure a level trading environment to allow competition for all wine producers. The Australian wine industry does not oppose a helping hand for the Canadian wine producers. We believe they add diversity and colour to the global wine sector. However, such help should not discriminate against sales of imported Australian wine. The Canadian consumer deserves a better deal than that."
This is the first in 15 years that Australia has initiated formal WTO action. The WFA said it will continue to work with the Australian Government to progress this action, and ensure outcomes are progressed for Australian wine business.