China has agreed to erase the 80% tariffs it presently applies on Australian barley, which will be a massive triumph for the Australian government’s efforts to reduce trade barriers with China. This will be a significant victory for the Australian government.
The tariffs were initially applied in the year 2020, at a time when tensions were at their maximum point; thus, this prompted Australia to initiate a long-consuming challenge through the World Trade Organization (WTO).
On Friday, the Chinese Ministry of Commerce announced on its website that “in view of the changes in the market situation of barley in China,” it was “no longer necessary to impose anti-dumping duties as well as countervailing duties on the imported barley originating in Australia.” The announcement stated that “in view of the changes in the market situation of barley in China,” it was “no longer necessary to continue to impose anti-dumping duties and countervailing duties.” The publication of this notice was in reaction to the fact that “it was no longer necessary to impose anti-dumping duties as well as countervailing duties on the imported barley from Australia.”
The implementation of the ruling is slated to take place on August 5 according to projections.
It is expected that Penny Wong, who now serves as Australia’s Minister of Foreign Affairs, and Don Farrell, who currently serves as Australia’s Minister of Trade, will have a press conference very soon.
In April, the Australian government granted its approval to defer the WTO complaint against the barley charges in exchange for China’s consent to commit to revising the barley tariffs within the next three to four months. China’s consent was given in exchange for the Australian government’s consent to suspend the WTO complaint against the barley taxes.
At the time when the challenge was postponed, the World Trade Organization was on the approach of issuing a verdict. The Australian government had always said that it would continue the challenge if China’s assessment did not conclude with a decision to erase the duties, and it was confident that the WTO panel would decide that the measures did not have a rationale. However, China’s review did not conclude with a decision to eliminate the tariffs.
Not only will individuals who cultivate barley benefit from the judgment that was announced on Friday, but also those who are in the business of exporting wine from Australia.
This is because China’s high tariffs on Australian wine are also the subject of a WTO dispute that is almost done being processed. The dispute is almost at its conclusion. Wong and Farrell had mentioned in the past that they believed the strategy that was used to resolve the conflict with the barley may potentially serve as a model for the approach that would be used in the wine business.
