For a long time, Australia and China have worked together economically.

China has become

Australia's most important trading partner, surpassing the United States, according to the two
countries' growing economic, social, cultural, and social ties during the last two decades. Yet, in
recent years, difficulties have grown in the partnership due to different legal challenges, most
notably multiple international trade conflicts.

In the first scenario, tensions arise when China purchases Australian seafood, which is sent to
China. China imposed anti-dumping levies on Australian rock lobster and prawn imports in 2009
because they were sold at below-cost prices. Because of this, the Dispute Settlement Framework
of the Office Of Fair Trading was used to settle the legal disputes between the two countries.
With Australia's help, the World Trade Organization ruled that Chinese anti-dumping taxes were
illegal because they didn't comply with WTO rules. Australia's seafood exports to China are now
duty-free after Beijing lifted its restrictions on them.

The second incident included a disagreement about China's consumption of Australian sugar. In
2015, China increased taxes on sugar supplies from Australia, citing the latter's alleged violation
of WTO rules as the reason. As a result, Australia has chosen to file a complaint with the WTO's
Dispute Settlement Body. WTO officials agreed with Australia that China's tax violated their
rules. To protect its own sugar industry, China has no alternative but to open its industry to
Australian product.

In a third situation, disputes have arisen because China has been importing Australian timber
products. In 2016, China slapped anti-dumping fines on Australian wood shipments for what
they viewed as undervaluing. World Trade Agency's Dispute Settlement Process was used to
settle the subsequent legal disagreements between the two countries. With Australia's help, the
Commission ruled that Chinese anti-dumping taxes were illegal because they didn't comply with
WTO rules. Hence, China has no alternative but to remove the tariffs and open its economy to
Australian timber. Ultimately, Australia has come out ahead in the three legal conflicts it has had
with China. Both times, the World Trade Organization ruled with Australia, finding that Chinese
actions were in contravention of WTO rules. As a result of the pressure, China opened its market
to Australian products, which was positive for business between the two countries. This has
expanded Australia's access to the Chinese market and therefore raised the volume of Australia's
exports there.

Likewise, Australia has benefited greatly from these three judicial rulings:

It is imperative that (1) the Resolving Disputes System of the Multilateral Trading System be
recognised as a reliable and effective means of resolving commercial disputes between countries.
This is significant because it facilitates conflict resolution between countries outside of the
judicial system.
The importance of following rules regulating international trade is shown by these instances.
This is vital because it discourages countries from engaging in dishonest trade practises in order
to acquire a competitive advantage in the global economy.

Third, the cases highlight the relevance of international trade negotiations in guaranteeing a win-
win agreement for all parties concerned.