In a significant move indicating a positive shift in trade relations, China has revealed its decision to lift the tariffs imposed on Australian barley imports that had persisted for a duration of three years, exerting a substantial impact on bilateral trade valued in billions of dollars.
The development has been met with approval from Australia’s Prime Minister Anthony Albanese, who expressed his appreciation for the gesture.
Concurrently, the Australian government has declared its intent to suspend its case lodged at the World Trade Organization (WTO) against China’s imposition of duties on barley imports, further underscoring a potential mend in the frayed diplomatic ties.
This development follows a broader trend of warming relations between the two nations, with Australia recently extending an invitation to China’s new foreign minister to embark on an official visit to the country.
As per an official statement from China’s Ministry of Commerce, the rescission of tariffs is scheduled to commence on Saturday. The ministry elucidated, “In view of the changes in China’s barley market, it is no longer necessary to continue to impose anti-dumping duties and countervailing duties on imported barley from Australia.”
The consequences of the imposed tariffs were acutely felt by the Australian barley sector, with the government estimating an annual average of approximately A$1.2 billion ($790 million; £620 million) worth of barley exports to China before the tariffs were implemented.
Notably, Beijing had previously introduced tariffs on several pivotal Australian exports in 2020, including beef, wine, and barley. Additionally, unofficial constraints were placed on exports of lobster and meat from specific abattoirs, collectively straining the trade landscape.
In light of the recent positive developments, Australian officials are now advocating for the elimination of tariffs on Australian wine by China, a matter that constitutes a separate grievance and has been addressed with a complaint lodged at the WTO.
Australia’s wine industry experienced a substantial blow when China, in 2020, imposed substantial tariffs on wine exports, effectively curbing access to what was formerly a thriving and lucrative market.
The diplomatic relations between Australia and China had significantly soured in the preceding year, precipitated by the then-Prime Minister Scott Morrison’s call for an international investigation into the origins of the Covid-19 pandemic.
Subsequent to the election of the center-left Labor government in May 2022, interactions between the two nations have resumed, fostering an atmosphere of improved relations and enhanced communication channels.
