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Australia anger mounts over China coal tariffs

Sydney - Criticism is mounting in Australia over China's decision to impose new tariffs on coal imports to shield domestic producers facing record price lows, media reports said Monday.

Levies of between 3% and 6% will apply to anthracite, coking coal and coal-based fuel imports as of Wednesday.

Australia's coal sector expects to be hard hit, with analysts predicting the closure of some mines. Russia also relies heavily on the world's biggest coal producer and consumer for revenue, while Indonesia is exempt from the new tariffs under a free trade agreement with Beijing.

"We do not want to get caught in a spiral of protectionism," Federal Treasurer Joe Hockey said at a weekend meeting of Group of 20 (G20) economic leaders in Washington, the Australian newspaper reported.

"There was a discussion about that in the IMF (International Monetary Fund), and I raised the issue of newly imposed tariffs being placed on our coal as a direct result of the fact that we have reduced the cost of production, so much so that we are taking market share from China in their own market."

The report quoted Hockey saying the tariffs were not in keeping with the desires of IMF participants and that there was strong support for Australia's position.

Australia is in the final stages of negotiating a free trade deal with China, a key trading partner. Prime Minister Tony Abbott has said he hoped to sign the deal when Chinese President Xi Jinping is in Brisbane at the summit of G20 leaders on November 15-16.

A day after Beijing announced the new tariffs, Abbott on Friday told reporters in Canberra it was "the kind of hiccup in our biggest and most important trading relationship that we just don't want or need".

China produces, and uses, as much coal in a year as the rest of the world put together.

Australia, exports around 70% of its total coal output.

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