Canberra: For the first time in more than two years, China allowed the import of Australian timber on Thursday, another indication that the strained bilateral relationship is being repaired.
After Australia called for an independent investigation into the causes of the COVID-19 pandemic, China imposed official and unofficial trade barriers on a number of Australian exports in 2020. One of those exports was timber.
The estimated annual cost to Australian exporters of the items on the list—coal, wine, barley, beef, seafood, cotton, and copper—was $14 billion.
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However, since the center-left Labour Party took office a year ago and put an end to Australia's nine-year conservative rule, relations have improved. Exports of Australian copper, cotton, and coal to China have recently resumed.
The ban on timber imports was lifted as of Thursday, according to Xiao Qian, the Chinese ambassador to Australia, because Australian exporters had allayed China's concerns about quarantine. On Wednesday, the Australian government received a formal notification.
So starting today, the timber from Australia will be shipped back to China, Xiao informed the press.
The breakthrough happened following Trade Minister Don Farrell's weekend trip to Beijing, where he sought to remove trade restrictions, particularly on Australian wine and barley.
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Foreign Minister Penny Wong praised China's resumption of the timber trade. Before the ban, it was worth $1 billion annually.
During a joint press conference with her Philippine counterpart Enrique Manalo while on a visit to Manila, Wong stated, "We are pleased with this development."
She continued, "We do believe that removal of these trade impediments benefits both parties," referring to Australia and China.
China's decision regarding timber, according to Treasurer Jim Chalmers, was a step towards his government's goal of stabilising the economic relationship with China.
We want to stabilise the relationship and any progress in removing these trade restrictions would be appreciated, Chalmers told reporters. "It's a crucially important market for us.
A number of forestry and paper industries are represented by the Australian Forest Products Association, which also applauded China's decision.
The ban's implementation more than two years ago resulted in significant upheaval and uncertainty for numerous timber exporters and the larger forest sector, and this resolution is welcomed, according to the association's chief executive officer Joel Fitzgibbon.
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With $287 billion in two-way trade last year, China is Australia's largest trading partner. In an effort to reopen the Chinese market to Australian barley, Australia put on hold a complaint to the World Trade Organisation in April. In exchange, China has agreed to reevaluate its choice to tax grain by 80%. Australia hopes China will agree to remove tariffs on both Australian wine and barley within the next few months.