China-Australia trade: Beijing’s barley-tariff removal raises hope that Australian wine will be next

Punitive barley trade tariffs, in place since April 2020, will go away on Saturday after a month-long delay by Beijing to review the contested measures

But some analysts say that Australian exporters have adapted by finding alternative markets, so China’s imports of their grain are unlikely to reach previous levels

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China is lifting barley tariffs that have forced Australian exporters to seek other destinations for the past three years. Photo: AFP

Published: 2:35pm, 4 Aug 2023Updated: 6:24pm, 4 Aug 2023

In what could be a precedent-setting geopolitical concession amid warming ties between Beijing and Canberra, China is lifting its punitive trade measures that have cut off Australian barley for more than three years.

The order to nullify anti-dumping and anti-subsidy tariffs on barley takes effect on Saturday, according to the Ministry of Commerce, which said in a terse statement on Friday that “there is no need to levy anti-dumping and anti-subsidy tariffs on Australian barley due to changes in China’s market conditions”, without further elaborating.

The Australian government responded to China’s decision, saying: “We have been clear that we expect a similar process to be followed to remove the duties on Australian wine.”

“We are continuing to pursue our wine dispute at the WTO and remain confident in a positive outcome,” the statement said, referring to Canberra’s ongoing World Trade Organization case against Beijing’s crippling tariffs on wine. “We will continue to press for all trade impediments affecting Australian exports to be removed, which is in the interests of both Australia and China.”

Stephen Olson, a senior research fellow at the Hinrich Foundation, said that both Canberra and Beijing have signalled “a strong desire” to move past the trade disruptions that have characterised relations for the past few years, and that the lifting of tariffs is another step in that direction.