China ends three-year dispute by lifting tariffs on Australian barley

04 Aug 2023 --- The Customs Tariff Commission of the country has decided to end the anti-dumping and countervailing duties on Australian barley, starting tomorrow (Aug 5), as relations between the two countries start to warm up.

China implemented the tariffs in 2020 amid diplomatic tensions, initially set for a five-year duration. The 80% tariffs on Australian barley “effectively blocked exports” to China, worth about US$916 million in the last year free trade was allowed (2018-2019), according to the Australian Foreign Ministry.

In April, at the request of the China Wine Industry Association, the Ministry of Commerce of the country recommended to the tariff authorities to remove the tariffs. 

The Australian government has swiftly suspended its case at the World Trade Organization over the now-expiring tariffs.

Similar hopes for wine
Nonetheless, China has not removed the tariffs of up to 218.4% on Australian wine, according to the Australian Grape & Wine organization. 

The mainland China market reached 36% of the sector’s exports until 2019, with a value of AUS$1.09 billion (US$0.71 billion). Now exports are down over 98% to AUD$21 million (US$13.77) in the market year until September 2022, according to Wine Australia. 

“We remain confident in the outcome for Australian wine at the WTO. If the agreement is successful in providing a pathway for lifting duties on barley, we expect a similar process to be followed to remove trade barriers for Australian wine,” said the Australian Minister for Trade and Tourism, Don Farrel and the Minister of Agriculture, Fisheries and Forestry, Murray Watt, in a statement, earlier in the year.

Farrell says that they will use the barley process as a template to resolve the still active wine tariffs.

By Marc Cervera