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China, Australia reach deal to resolve barley tariff dispute as Canberra suspends WTO case
China-Australia reach deal to resolve barley dispute, suspend WTO case, Australian foreign minister Penny Wong says
- Foreign minister Penny Wong says Australia will suspend its case at the World Trade Organization while China conducts a review into duties imposed on Australian barley
- China confirmed in May 2020 that it would impose a tariff of 80.5 per cent on Australia’s barley exports following the conclusion of its anti-dumping investigations
Australia has reached an agreement with China to resolve their dispute over barley imports, foreign minister Penny Wong said on Tuesday, the latest sign of improving ties between the trade partners.
Until then they had ranged between A$1.5 billion (US$1 billion) and A$2 billion a year.
Wong said Australia would suspend the WTO case while China hastens a review into duties imposed on the grain.
China has agreed to undertake an expedited review of the duties imposed on Australian barley over a three-month period, that may extend to a fourth, if required
“China has agreed to undertake an expedited review of the duties imposed on Australian barley over a three-month period, that may extend to a fourth, if required,” she said.
“In return, we have agreed to temporarily suspend the WTO dispute for the agreed review period.”
“We are hopeful that at the end of that review process the impediments that currently exist will be suspended or removed and that we can get back to normal trade with China,” trade minister Don Farrell said alongside Wong at the same press conference in Adelaide on Tuesday.
In a statement, Grain Producers Australia welcomed the move, which could speed up the resumption of the barley trade.
“This process to reach a resolution would be significantly shorter than if the WTO process continued,” said chairman Barry Large.
China’s Ministry of Commerce, which imposed the tariffs for a five-year period, did not respond to a request for comment.
“China is willing to work with Australia … to advance the rebuilding of mutual trust between both countries and for bilateral ties to return to the right track,” said foreign ministry spokesman Wang Wenbin on Tuesday. He did not comment on the agreement.
Just one of several sources of friction between the two nations in recent years, China’s anti-dumping and countervailing duties prompted its buyers to turn to Canada, France and other markets.
But prices of barley have fallen since the start of the year, partly on hopes that Australia will resume imports.
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“Everybody is waiting for Australian barley to come,” said Yang Zhenglong, general manager at Malteurop China.
While most maltsters in China already have enough stocks for this year, resumption of trade in a few months time would allow Australia’s new barley crop, harvested from October, to reach China at the end of the year, he added.
Additional reporting by Agence France-Presse
