China has indefinitely suspended Victorian timber imports in the latest escalation of tensions between Australia and its biggest trading partner. Source: Timberbiz
It follows China’s decision to block a shipment of Queensland timber sending exporters into limbo amid fears more exports will be blocked.
In both cases Chinese authorities claimed shipments were infected with the live bark beetle.
At least two shipments, which had been expected to load at Portland in western Victoria this week, have now been cancelled and there are concerns for shipments at sea already en route to China.
It is possible they could now be rerouted to markets in Vietnam or Japan.
The annual trade for whole logs from Victoria to China is valued at $260 million.
In a notice released on Thursday, China’s Customs officials said the bugs were identified in Victorian logs shipped to Xiamen and Shenzhen, two cities in the country’s south.
An investigation into the suspension, undertaken by Australian authorities, is expected to take four weeks.
Michael O’Connor, the CFMEU manufacturing national secretary, said China was targeting industries in rural areas using non-tariff barriers.
“I support our country not being bullied … but surely there’s a big gap between being bullied and doing nothing.”
The ABC has reported that almost 30 consignments from Australia to China in the months up to July, including burnt logs from the summer’s bushfires, had a bug detected in them.
A spokeswoman for the Victorian Government said it would “back the Federal Government to lead effective talks with Chinese authorities”.
China says the pest, the live bark beetle, has been detected in a number of shipments from Victoria this year.
“There is concern around the effectiveness of fumigation treatments on shipments of bushfire-affected logs,” Federal Agriculture Minister David Littleproud said.
“The department has notified the industry and the major Victorian exporter and is working with industry on an enhanced treatment and inspection response.”
Mr Littleproud said he would be writing to the General Administration of Customs in China in the coming days.
Victorian Agriculture Minister Jaclyn Symes said she received advice of the suspension last night and was now working with the federal government, which was leading discussions.
Ms Symes said she was not aware of any evidence of bark beetle so far, but that was being worked through.
“Of course, if bark beetle is present, that is indeed a legitimate reason to suspend trade and we want to make sure we can address any of those quarantine issues as quickly as possible,” she said.
The Australian Forestry Products Association said it is aware that Chinese customs authorities have notified the Australian Department of Agriculture, Water and Environment that it has suspended the export of logs from Victoria due to phytosanitary concerns, in addition to the existing suspension of log exports from Queensland.
“AFPA is working with the Department of Agriculture, Water and Environment to obtain more details from Chinese officials about these incidents and to address the issues identified,” a spokesman said.
The Port of Portland’s chief executive, Greg Tremewen, said the suspension would have far-reaching consequences for the local economy.
“We’re collateral damage in the whole thing,” he said.
He said the Port of Portland exported more than 1 million tonnes of logs each year with the vast majority going to China.
“I’m sure the value of logs that go through this port would be in the hundreds of millions of dollars,” Mr Tremewen said.
Two ships were due to arrive next week to be loaded with logs, he said.
“Something would need to happen very quickly for those ships to be loaded. It’s not good news.”
