Australia 'disappointed' by China barley tariffs
19 May, 2020
Australia is "disappointed" China has imposed massive tariffs on its barley and will consider taking the dispute to the World Trade Organization, the country's agriculture minister said Tuesday (May 19).
But officials played down fears Canberra was headed for a trade war using its biggest export market, saying there would be no "tit-for-tat" response to the Chinese action.
Beijing on Monday announced 80.5 per cent tariffs on Australian barley after finding Australian subsidies and dumping had "substantially damaged domestic industry".
The tariffs are due to last five years.
"To state that I'm disappointed is an understatement," Agriculture Minister David Littleproud said in response.
"This is something that we will strongly reject, the premise that the Australian barley farmer is subsidised in any way, form or form," he said.
"We will now sort out the determination by Chinese officials, calmly and methodically, and reserve our right to visit the World Trade Organization to achieve the independent umpire to create that determination."
China accounts for a lot more than 50 % of Australia's barley exports, making it the country's major barley market.
The Chinese commerce ministry said a 73.6 per cent anti-dumping tariff and 6.9 % anti-subsidy tariff on imports of Australian barley would take effect Tuesday.
It comes days after Beijing suspended imports from four major Australian beef suppliers, amid a diplomatic tiff between the two countries over Canberra's push to probe the origins of the coronavirus pandemic.
"NO TRADE WAR"
Littleproud denied any link between your tensions and the brand new tariffs - which follow a Chinese investigation launched in November 2018 - saying there is "no trade war".
"We continue to trade openly on several other commodities, not merely in agriculture, however in minerals and in addition services. This won't change," he said.
Australian Trade Minister Simon Birmingham said there will be no retaliation against China, the country's biggest trading partner.
"We don't pursue our trade policies on a tit-for-tat basis. We will continue to operate as we always do," he said.
"We acknowledge that China includes a to use anti-dumping laws and rules. We use those laws and rules sometimes as well. But it is a case where China, we think, in cases like this, has made errors of both fact and law in the application of those rules."
A joint statement from five grain growers' organisations said the dispute was more likely to disrupt and halt exports, costing the Australian barley industry at least A$500 million (US$327 million) a year.
Littleproud said Australian barley farmers would now seek to pursue other export markets - but filling the hole left by Beijing will never be easy.
China imported 2.5 million tonnes of Australian barley last financial year, with the next-biggest importer, Japan, buying significantly less than 800,000 tonnes.
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