China has dropped its 80 per cent tariffs on Australian barley, after a long-running and high-profile trade war between the two nations.
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 tariffs were made up of a 73.6 per cent anti-dumping tariff and a 6.9 per cent anti-subsidy tariff, the scrapping effective from August 5.
A statement from the Australian government said the removal of the duties meant Australia would discontinue the WTO appeal.
"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 move, 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 federal 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.
National Farmers Federation chief executive, Tony Mahar said that the scrapping of the tariffs was welcome news for some 23,000 Australian grain producers.
"These tariffs significantly impacted the barley trade between Australia and China which previously accounted for approximately 60–70 per cent of barley exports," he said.
"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."
The right outcome, says Wong
Foreign Affairs Minister Penny Wong said that the removal of the tariffs was the result of work from both government and industry describing it as a "great success for our nation and barley producers".
"This is the right outcome, the right outcome for Australian producers and Chinese consumers," Ms Wong said.
She thanked officials from her department and those in the industry for their patience while the matter was being resolved, also acknowledging the WTO.
"We wouldn't have been able to get this result without the WTO."
Trade Minister Don Farrell said the Australian barley industry had suffered a large financial loss since the introduction of the Chinese tariffs in 2020, estimating it to be around $1 billion dollars annually.
"Our barley growers and our exporters will now be able to re-enter tariff-free to the Chinese market," he told a press conference in Adelaide on Friday.
Senator Farrell said that he had consistently said that the Albanese government would "prefer to resolve all of our disputes with China through discussion and dialogue rather than disputation".
He added that the "template" used with the help of WTO to solve this trade issue that would also be used to assist in the ongoing dispute over wine tariffs.
When asked if China's decision would pave the way for Prime Minister Anthony Albanese to visit the country, Senator Wong said she hoped the two countries could "continue on the positive path we are on".
'The Chinese are back'
Barley growers had scrambled to find new markets after the tariffs were imposed in 2020.
Andrew Weidemann, a Victorian grain grower and spokesperson for Grain Producers Australia, said the announcement was an "uplift for the Australian barley grower", describing the tariffs as "politically driven".
Mr Weidemann also refuted China's claim that Australian farmers were being subsidised by the Australian government, an accusation China had originally brought the tariffs over.
He said the WTO process was one grain producers didn't support, preferring the government to negotiate an outcome: "which has now been realised finally".
"On the back of the last four really good grain seasons for Australia, we've seen somewhere near a $2.5 billion loss," he said.
"The barley industry right around the country will be rejoicing tonight that the Chinese are back and back ready to buy plenty of barley."
https://news.google.com/rss/articles/CBMiV2h0dHBzOi8vd3d3LmFiYy5uZXQuYXUvbmV3cy9ydXJhbC8yMDIzLTA4LTA0L2JhcmxleS10YXJpZmZzLXNjcmFwcGVkLWJ5LWNoaW5hLzEwMjY4OTc0ONIBKGh0dHBzOi8vYW1wLmFiYy5uZXQuYXUvYXJ0aWNsZS8xMDI2ODk3NDg?oc=5
2023-08-04 07:41:15Z
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