China has won its World Trade Organisation dispute against Australia on steel products, as the federal government defends the integrity of the nation's trade remedies system.
Beijing made a complaint to the WTO in June 2021 over Australia's extra taxes on railway wheels, wind towers and stainless steel sinks.
Trade in these products has continued and was worth $62 million in 2022.
In all three cases, the WTO panel said Australia's investigating authority, the Anti-Dumping Commission, had acted inconsistently with some articles of the anti-dumping agreement.
The dispute was made during heightened diplomatic tensions after China imposed sanctions worth $20 billion on Australian exports.
In a statement, Trade Minister Don Farrell said the government supported the rules-based trading system and accepted the ruling of the WTO.
"Australia will engage with China and take steps to implement the panel's findings," he said.
Senator Farrell said the report does not "diminish the integrity of Australia's trade remedies system".
"Our system is evidence-based and non-discriminatory and will continue to respond effectively to unfair trade practices," he said.
"Australia remains committed to a fully-functioning WTO dispute settlement system so that the rights and obligations of all WTO members can be enforced."
The government has suspended its own WTO dispute against Beijing over sanctions on Australian wine worth $1.1 billion in exchange for a review by China.
Labor will resume its dispute if the review hasn't been finalised by March 31.
Chinese sanctions worth $2 billion remain on wine, lobster and beef.
- With Reuters
