China imposes customs delays on imports of Australian table grapes from April 2021
Context
In April 2021 some Australian table grape exports to China began to experience substantial delays while clearing Chinese customs. An April 25 Chinese state media report claimed that the delays related to “strict anti-virus inspections” amid the COVID-19 pandemic, citing industry sources as saying that “clearance delays for Australian grapes are mainly due to the ongoing epidemic in Australia and the need to conduct nucleic acid tests on imported fruit to protect public health.” But the same state media report also hinted that “Chinese importers are already moving to reduce the proportion of Australian fruit due to low profits and worsened bilateral ties.” In May 2021 then Australian trade minister, Dan Tehan, publicly acknowledged the issue. In an interview with ABC News, Tehan noted that “[a]bout 80 per cent of table grape exports seem to have got in seamlessly” but said that “[i]t seems to be the last 20 per cent where there are some issues.” Australian and international media linked this dispute to broader deterioration of relations between Beijing and Canberra, exacerbated by the Australian government’s public calls for an inquiry into the origins of the COVID-19 pandemic.
Impact
This measure targetted table grapes (i.e. grapes grown to be eaten fresh – not those intended for wine/juice/raisin production). South Australia produces more than 90% of Australia’s table grape exports. Until 2021 China was reportedlyAustralia’s most important export market for table grapes – buying up over 40% per year at a cost of around AU$300 million.
According to analysis published by the Australian Trade and Investment Commission in June 2022, Australia’s table grape exports to Vietnam expanded considerably from 2021-22, due to “improved trading conditions and ongoing export diversification efforts.”
Responses
(i) Australian industry responses
Early on, industry figures publicly acknowledged concerns around the customs delays. Jeff Scott, head of the Australian Table Grape Association, challenged China’s claims about the pandemic causing the customs delays, telling press that “as we know Australia is basically COVID free within the community. So I don’t see (our grapes) posing any threat to the Chinese community at all.” As with other instances of Australia-China Weaponised Trade, Australian firms responded through attempts to diversify and strengthen alternative export markets – despite acknowledging the difficulty of this strategy.
(ii) Australian Government Responses
Australia did not publicly alter its attitude to relations with China despite this Weaponised Trade – going ahead with plans to end cooperation between its state of Victoria and China’s Belt and Road Initiative around the time of this dispute.
(iii) Third Party Responses
This case of Weaponised Trade was relatively minor compared to other similar mechanisms China employed against Australia around the same time. Typically table grapes were also mentioned in international reporting, but reports focused on more heavily impacted industries, such as coal.
Status
This mechanisms was relatively short-lived. By April 2022, an Australian media report sponsored by the Commonwealth government’s Trade and Investment Commission was suggesting that – unlike wine exports – Australia’s table grape exports to China were thriving. The article quoted an Australian table grape farmer as saying that individual relationships with Chinese customers helped them to continue exports, saying “China has been a good boom for us for a long time, but the most important thing that’s happened in China is over these years, we have developed a relationship and not just relationship we’ve developed friendship with our customers over there. . . They’re dealing with family farms and they are families themselves. That means they want our fruit because they can trust us. And that has helped get the Australian product over there.”
References & Further Information
Australian Government. 2022. “Demand for Australian table grapes continues to grow in Vietnam.” Australian Trade and Investment Commission. June 22. Available at: https:// http://www.austrade.gov.au/en/news-and-analysis/analysis/demand-for-australian-table-grapes-continues-to-grow-in-vietnam
Packham, C. 2021. “Australian grape exports experience Chinese custom delays.” Reuters. April 23. Available at: https://www.reuters.com/article/world/asia-pacific/australian-grape-exports-experience-chinese-custom-delays-idUSL4N2MG1WZ/
Saunokonoko, M. 2021. “Australian table grapes suffer ‘unforeseen’ delays at China ports.” 9News. May 3. Available at: https://www.9news.com.au/national/australian-table-grapes-suffer-unforeseen-delays-at-china-ports/5d3c976c-4d05-45f8-8091-82ce68b140e2
Small Business Secrets and Austrade. 2022. “Despite a shortage of rural workers, Australian table grape growers are thriving as new markets open up.” SBS News. April 12. Available at: https://www.sbs.com.au/news/small-business-secrets/article/despite-a-shortage-of-rural-workers-australian-table-grape-growers-are-thriving-as-new-markets-open-up/j95bsu0gu
Sullivan, K. 2021. “Has China’s trade war extended to table grapes? Search for answers as growers lose millions.” ABC News. May 20. Available at: https://www.abc.net.au/ news/rural/2021-05-20/growers-lose-millions-as-china-puts-go-slow-on-table-grapes/100150536
Wilson, J. 2021. “Australia Shows the World What Decoupling From China Looks Like.” Foreign Policy. November 9. Available at: https://foreignpolicy.com/2021/11/09/ australia-china-decoupling-trade-sanctions-coronavirus-geopolitics/
Yin, Y. 2021. “Australian fruits face delays at Chinese ports due to strict anti-virus inspections: sources.” Global Times. April 25. Available at: https://www.globaltimes.cn/ page/202104/1222053.shtml