China’s scrapping of an 80 per cent tariff on Australian barley could prove a catalyst for the lifting of other trade sanctions between the two nations, according to Federal Trade Minister Don Farrell.
China’s scrapping of an 80 per cent tariff on Australian barley could prove a catalyst for the lifting of other trade sanctions between the two nations, according to Federal Trade Minister Don Farrell.
China’s Minister of Commerce on Friday revealed axing of the tariff imposed in 2020 after Australia called for an inquiry into the origins of COVID-19 would come into effect as of Monday, August 5.
“In view of the changes in the market situation of barley in China, it is no longer necessary to continue to impose anti-dumping duties and countervailing duties on the imported barley originating in Australia,” China’s Ministry of Commerce said in a statement.
The move follows Australia’s decision to suspend a World Trade Organisation challenge against the tariffs in return for China reviewing the tariff and brings to end a saga Mr Farrell said had cost the industry $1 billion a year.
National Farmers Federation chief executive Tony Mahar said the announcement was a step in the right direction to resuming full trade with China.
“Scrapping these tariffs is welcome news for some 23,000 Australian grain producers who have been impacted by the tariffs imposed in 2020,” he said.
“These tariffs significantly impacted the barley trade between Australia and China which previously accounted for approximately 60 to 70 per cent of barley exports.
“The Australian farming sector was always of the view there was no justification for these duties and that it was in both countries’ best interest for all trade impediments to be removed.”
Business Council chief executive Jennifer Westacott said the move bode well for other trade sanctions.
“This mutually beneficial outcome is a result of prudent diplomacy and we acknowledge the work of the government to achieve this positive outcome,” she said.
“The business sector looks forward to the removal of remaining trade impediments and continuing the process of normalising our trade relationship.
“Trade between China and Australia is mutually beneficial, and business wishes to see Australia continue to benefit from the opportunities offered by the Chinese economy.”
Foreign Affairs Minister Penny Wong said removal of tariffs would not have been possible without the WTO’s support.
“This is the right outcome for Australian producers and the right outcome for Chinese consumers,” she said.
“It affirms the calm and consistent approach the Albanese government has taken since we have come to office on these issues.”
WA was expected to crop 1.6 million hectares of barley this season at a yield of 2.5 tonnes per hectare, 14 per cent down on the previous year, according to a June Federal Department of Agriculture report.
Mr Farrell said he hoped a similar resolution would follow on wine tariffs.
In December he said he was working to have meat and crayfish sanctions lifted within a year.
A ban on Australian timber imports was lifted in May while coal, cotton and copper trade has already resumed.
