Rex Patrick (SA, Independent) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Agriculture, Drought and Emergency Management, Senator Ruston. South Australia produces half of Australia's wine, and 80 per cent of our wine is exported. Exports to China have reached $1.2 billion annually. What is the government's estimate of the prospective losses to the Australian wine industry, and specifically to South Australia, as a result of China's punitive tariff decision and the effective exclusion of Australian wine from the Chinese market? How much damage will China's tariff do? What is the likely time frame for any Australian complaint to the World Trade Organization about China's outrageous actions? Is it not the case that the WTO's dispute resolution process could take well over a year and likely much longer?

Anne Ruston (SA, Liberal Party, Minister for Families and Social Services) Share this | Link to this | Hansard source

Thank you, Senator Patrick, for your question and for the heads-up you gave us about the subject. Obviously Australia is extraordinarily disappointed by the actions of China to seek to impose a provisional anti-dumping measure—a tariff of between 107 and 212 per cent. The Australian government is absolutely unaware of any evidence that Australian wine exporters have dumped their products in the Chinese market and we acknowledge that Australian exporters have worked very, very hard to establish themselves in that market. However, right now the most important priority of the government is to work with the Chinese Ministry of Commerce for the 10-day period in which we are currently allowed to make submissions in writing by the affected parties in response to this announcement.

I also understand that today—I'm not sure whether they have or they're about to—the minister for agriculture, along with Senator Birmingham, the minister for trade, will be meeting with the Chief Executive of Australian Grape & Wine, Tony Battaglene, to discuss with him the implications of this particular action, should it be successful, on the Australian wine industry. There is no doubt, Senator Patrick, that, should this action be successful and these provisional duties be brought into place, the impact on our home state will be significant. As you would be aware, $800 million of the $1.07 billion worth of wine exported to China comes out of our home state of South Australia. So we will continue to work with the industry to assess the impact should this go ahead, but our first priority must be to make sure that it doesn't happen in the first place, and we have a very short time frame in which to make that happen, with the 10 days we have in which to make written submissions.

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Patrick, a supplementary question?

Rex Patrick (SA, Independent) Share this | Link to this | Hansard source

Given that China's Ministry of Commerce first announced it was targeting wine imports in late August, three months ago, what plans for immediate assistance to our wine industry is the government now ready to implement? Will the government provide financial assistance, such as loans, to help family wine growers and winemakers survive this disruptive event, and what are you going to do in respect of other international markets?

Anne Ruston (SA, Liberal Party, Minister for Families and Social Services) Share this | Link to this | Hansard source

Thank you, Senator Patrick. I wasn't in the meetings that the trade minister and the agriculture minister had, or are having, with the wine industry today, where I'm sure they will be discussing a number of things by which the Australian government can support the Australian wine industry through these particularly difficult times. One thing I can tell you is that the government has, over recent months and years, worked to open up other trade market opportunities—for instance, through the agricultural counsellors who have been put in place in many of our highly profitable other trade markets. I believe we now have 22 trade counsellors that are working through the ASEAN countries to make sure that we continue to successfully build markets and get favourable trading arrangements with these emerging markets.

We also do things like the Export Market Development Grants program. Their free seminars and trade advantage opportunities— (Time expired)

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Patrick, a final supplementary question?

Rex Patrick (SA, Independent) Share this | Link to this | Hansard source

In light of China's punitive actions, will the government suspend the wine export charge, wine research levy and grape research levy which industry pays to Wine Australia, which in recent years has spent time advocating in the Chinese market? Will the government replace those industry levies with a substantial increase in direct budget funding, this year and across the forward estimates, for Wine Australia to ramp up its activities, especially to promote things outside of the Chinese market?

Anne Ruston (SA, Liberal Party, Minister for Families and Social Services) Share this | Link to this | Hansard source

Thank you, Senator Patrick. Obviously, I am not in a position to come in here and advise you of policy of which I am unaware. But one thing I absolutely can tell you, Senator Patrick, is that the Australian government has backed and will continue to back our exporters. For instance, the government has a track record of standing up for our wine exporters. We took Canada to the World Trade Organization. Canada agreed, back in July this year, to remove its tax and sales restrictions discriminating against Australian wine, following Australia's initiation of a World Trade Organization dispute. It is an example where we have demonstrated our willingness to back our exporters, and our wine exporters particularly. We will make sure in this particular instance that we work through all options to make sure that we can push back against this antidumping claim made by China, so that our exporters are not unfairly dealt with.