Australia will seek to take part in an inquiry into the trade spat between the EU and China, as relations between Beijing and the west continue to sour.
The EU claims Beijing is targeting Lithuania, one of the smallest countries in the regional bloc, for allowing Taiwan to open a diplomatic outpost in its capital, Vilnius.
“Launching a World Trade Organisation case is not a step we take lightly,” EU Trade Commissioner Valdis Dombrovskis said in a statement.
“However, after repeated failed attempts to resolve the issue bilaterally, we see no other way forward than to request WTO dispute settlement consultations with China,” he added.
In a statement, Trade Minister Dan Tehan said Australia had a substantial interest in the dispute, and would seek to join consultations.
“Australia opposes the use of economic coercion and discriminatory and restrictive trade practices which undermine the rules-based international trading system and cause economic harm,” he said on Saturday.
“We are committed to upholding and supporting the multilateral trading system with the WTO at its core.
“The WTO dispute settlement system is designed to help members settle their differences in a respectful manner.
“Australia has a substantial interest in the issues raised in the dispute brought by the European Union against China regarding discriminatory trade practices imposed on Lithuania and will request to join these consultations.”
China’s foreign ministry spokesman Zhao Lijian has labelled Lithuania’s claim “groundless and inconsistent”.
“They are issues between China and Lithuania, not China and the EU. We urge the Lithuanian side to immediately mend its ways, avoid willingly act as a pawn for ‘Taiwan independence’ separatist forces and anti-China forces, and return to the right track of adhering to the one-China principle,” he said.
WTO arbitration could take years to before a resolution is reached.
Earlier this month, Mr Tehan said he would “robustly” defend Australia against Beijing’s claims of anti-dumping and countervailing measures on stainless steel sinks, railway wheels and wind towers.
Relations between Beijinxjmtzywg and Canberra have continued to sour, fuelled by several disputes over tariffs on Australian wine, barley, lobster and coal exports.
Australia’s decision to sign an agreement for nuclear submarines with America and the United Kingdom has also stoked tensions.
Treasury estimates China’s trade restrictions have cost Australian exporters about $5.4bn in exports over the past year.
