China has agreed to drop 80 per cent tariffs on Australian barley.
Key points:
- China has agreed to drop 80 per cent tariffs on Australian barley
- The tariffs were part of a long-running and high-profile trade war between the two nations
- The anti-dumping tariff was 73.6 per cent, while the anti-subsidy tariff was 6.9 per cent
The tariffs were introduced in May 2020 after Beijing accused Australia of selling the grain below the cost of production and subsidising farmers.
The tariffs set off a trade war between the two nations and were widely considered to be a form of retaliation for Australia’s call for an inquiry into the origins of COVID-19.
Australia referred China to the World Trade Organization (WTO) over the tariffs in December 2020 but suspended the appeal earlier this year when Beijing agreed to review the tariffs.
At the height of the trade in 2018, Australia's barley exports to China were valued around $1 billion, which drew to a standstill once the tariffs were applied.
A statement from China's Ministry of Commerce on Friday said it had: "ruled that, 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."
The decision is effective from August 5.
The tariffs were made up of a 73.6 per cent anti-dumping tariff and a 6.9 per cent anti-subsidy tariff.
A statement from the Australian government said the removal of the duties meant Australia would discontinue the WTO appeal.
"We welcome this outcome, which paves the way for our barley exporters to re-enter the Chinese market – benefiting Australian producers and Chinese consumers," it said.
"This outcome demonstrates the importance of the WTO dispute mechanism in defending the interests of Australia's world-class producers and farmers," it said.
In a similar appeal, in 2021 Australia referred China to the WTO over its decision to apply hefty tariffs on Australia's red wine.
A resolution on that case is anticipated later this year, but the statement suggested that action too could be discontinued.
"We have been clear that we expect a similar process to be followed to remove the duties on Australian wine," the Australian government said.
"In the meantime, we are continuing to pursue our wine dispute at the WTO and remain confident in a positive outcome."
A number of Australian abattoirs remain suspended from trading with China, while Beijing's customs requirements continue to prevent rock lobster exports.
Coal and timber exports were also affected by the deep freeze but recently resumed.
Grain Producers Australia spokesman Barry Large said the removal of these tariffs was a welcome win for the industry.
"We thank and acknowledge the work of both governments in contributing to this positive outcome through an expedited process to reach a resolution which has been significantly shorter than if the WTO process continued," he said.
Trade Minister Don Farrell and Foreign Affairs Minister Penny Wong are set to hold a press conference in Adelaide today.
"trade" - Google News
August 04, 2023 at 11:41AM
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Australian barley tariffs to be scrapped by China after long-running trade dispute - ABC News
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