Australia gives China extra month to decide on barley tariffs

Australia has agreed to China’s request for an extra month to decide whether to lift duties on Australian barley, extending the suspension of a World Trade Organization case while Beijing reviews the restrictions.

In April, Australia agreed to temporarily suspend a WTO case against China over the barley tariffs for a three-month period, with a possible fourth month if needed. China has now requested the extension, according to a spokesperson for Foreign Minister Penny Wong. 

If the duties are not lifted at the end of the four-month period, Australia will resume the dispute in the WTO, the spokesperson said. While disappointed that China’s review could not be completed in three months, Australia is “hopeful the impediments will be lifted in the near future,” the spokesperson said. 

Australia’s Nine newspapers reported Tuesday that Prime Minister Anthony Albanese was considering postponing his trip to Beijing until 2024, with the government not wanting to stage such a significant visit until all China’s trade sanctions on Australian goods were lifted.

Beijing imposed tariffs of over 80% on Australian barley in May 2020, after accusing the country of dumping the grain in China. At the time it was estimated the penalties could cost the Australian market as much as A$2.5 billion ($1.7 billion) over five years, according to industry group Grain Growers. In 2018-19, the barley trade with China was worth almost A$1 billion.

Australia expects to follow a similar process to remove trade barriers for wine, if agreement is reached on barley.