China Slashes 80% Tariff on Australian Barley in Bid to Bolster Relations

In a carefully calculated move, China has dropped an 80 percent tariff on Australian barley, as Beijing tries to strengthen bilateral relations. This comes after Canberra urged China to do away with all trade restrictions. Beijing slapped import tariffs on several Australian exports at the peak of diplomatic tensions between the two countries in 2020 and 2021. 

China’s “generous” gesture follows Australia’s decision in April 2023 to temporarily suspend its World Trade Organization (WTO) complaint against Beijing for its 2020 decision to impose 80.5 percent duties on Australian barley trade. 

On Friday, the Chinese Commerce Ministry highlighted that it was doing away with the anti-dumping and countervailing duties on Australian barley, citing changes in the Chinese market. Australian Trade Minister Don Farrell said they want all of the impediments that currently affect trading relationships with China, removed. He said a range of factors were at play, with Chinese beer consumers and barley importers very strongly in favor of reintroducing Australian barley. 

Barry West, Western Australia grain grower, welcomed China’s decision. “We export a lot to China and I feel good for the Chinese, they’ll be getting the best quality barley in the world – it’s great for both nations.” West said the 2020 move caused significant stress for the grain growers. 

Under the leadership of the then Prime Minister Scott Morrison, relations between Australia and China deteriorated in 2020 after Canberra called for an international inquiry into Beijing’s handling of the COVID-19 pandemic. China blocked CBH grain imports in September 2020 after Customs found pests in a shipment of barley. Beijing sought barley from France, Canada and Argentina, while Australia turned to Saudi Arabia and Europe. 

Farrell said Australia’s strategy throughout the process has been to de-escalate the issues, to try and resolve the issues between the two countries through dialogue than disputation. The minister believes that with goodwill on both sides, Australia and China can stabilize relations.