China drops its Aussie barley tariffs after three years and $1 billion
China will lift punitive tariffs on Australian barley exports from Saturday.
The Chinese government imposed the tariffs on barley imports in May 2020, over what it claims were concerns over the dumping of cheap grain.
“The Ministry of Commerce 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 Chinese government said.
Australia said it would suspend a World Trade Organisation dispute against China in exchange for Beijing agreeing to review its tariffs.
The decision comes before the August 11 deadline for Canberra to reinstate the dispute.
Trade Minister Don Farrell, Foreign Minister Penny Wong and Agriculture Minister Murray Watt said in a joint statement the decision would benefit Australian producers and Chinese consumers.
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“It affirms the calm and consistent approach that the Albanese government has taken,” the ministers said.
Since May 2020, China’s duties on Australian barley have effectively blocked $916 million in exports to the world’s biggest beer market.
“The removal of these duties means that Australia will now discontinue legal proceedings at the WTO,” the ministers said.
“This outcome demonstrates the importance of the WTO dispute mechanism in defending the interests of Australia’s world-class producers and farmers.”
The Australian government will continue to pursue its wine dispute in the WTO and remained confident of a positive outcome, they said.
