Letting the Umpire Decide !

 Trade interruptions have long been the way one country shows its displeasure to another and in the mid twentieth century the American decision to stop selling oil to Japan culminated in the attack on the American fleet in Pearl Harbour.

It is unlikely that this spat betwween China and Australia will precipitate a shooting war but Australia has made the right choice in referring the matter to the international umpire.  The very purpose of the United Nations was to intervene in disputes between nations and settle them short of war.

In this case, when trade interruptions occur they fall under the jurisdiction of the WTO  - the World Trasde Organization. Australia is claiming that China's refusal to allow Auistralian barley, timber and wine into the country is a breach of its obligations under the free trade agreement in place between the two countries.

This dispute has been steadily escalating and now ships loaded with Australian coal are stranded off Chinese ports.  These ships are crewed by sailors from many world countries and their welfare is of concern.  Some shipping companiesd are slow in forwarding their pay and this affects the living standards of their families who rely on that money for sustenance.

This is not a case of China being able to manage its industry without the use of coal.   It is replacing the coal exported from Australia with coal from Indonesia, Russia and Mongolia and this emits a fifty percent higher rate of emissions that the Australian coal, and this is happening when world emissions to save the planet from overheating are at a crirtical stage.

This whole trade fiasco seems related to Australia's attempt to instigate an internatiopnal enquiry into the coronavirus pandemic which erupted out of Wuhan, China and crippled world trade when it forced isolation on the world.  China is sensitive and is trying to deflect the blame to other countries and has singled out Australia as a warning of how it can voice its displeasure.

Taking the matter to the WTO will not bring a quick response.  It will spark an international enquiry which will have to hold hearings, but if that enquiry fiinds China guilty it is likely trade will resume, or China will be affronted and walk out of the United Nations.

China may think it is big and powerful enough to defy the WTO but losing its seat at an international forum would be a blow to its prestige.  As the injured party, Australia may emerge as the victor and the WTO may order a resumption of trade.

China needs to remember that it lives in an orderly world and does not make the rules.  This decision to take the matter to the WHO is the right decision.  That is where trade disputes belong !