China has agreed to scrap its 80% tariffs on Australian barley, in a major win for Canberra’s push to ease trade barriers between the two countries.
The tariffs were first imposed in 2020 at the height of tensions, and prompted a lengthy challenge by Australia through the World Trade Organization.
In a notice on its website published on Friday, China’s commerce ministry announced that “in view of the changes in the market situation of barley in China” it was “no longer necessary to continue to impose anti-dumping duties and countervailing duties on the imported barley originating in Australia”.
The decision is expected to take effect from 5 August.
The Australian foreign affairs minister, Penny Wong, and the trade minister, Don Farrell, are expected to hold a press conference soon.
In April, the Australian government agreed to suspend the WTO challenge against the barley tariffs in return for China agreeing to commit to review the barley tariffs within three to four months.
The WTO ruling had been imminent when the challenge was frozen. The Australian government had always said it would resume the challenge if China’s review did not end with a decision to scrap the tariffs, confident that the WTO panel would decide the measures were not justified.
Friday’s decision will be a relief not only to barley producers but also for Australian wine exporters.
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That is because China’s hefty tariffs on Australian wine are also subject to a nearly completed WTO challenge. Wong and Farrell had previously indicated they hoped the process used to resolve the barley dispute could be a template for wine.
More to come …
