Australia optimistic China to end barley, wine tariffs this year

by Bloomberg Apr 16, 2023

The Australian government is optimistic that punitive trade sanctions imposed by the Chinese government on Australia’s exports could be lifted by the end of this year, after Beijing announced a review of barley tariffs it imposed during a low-point in relations between the two countries.

Speaking to Bloomberg ahead of an official visit to Vietnam and the Philippines, Trade Minister Don Farrell said the announcement from Beijing on Friday meant the barley dispute between China and Australia could be resolved “in months, rather than years.”

“We are capable of resolving these trade disputes. We’ve seen it in the case of coal, we’re well down the track of resolving it in the case of barley,” Farrell said.

Farrell is due to leave on Sunday for a week-long visit to Vietnam and the Philippines, part of what the trade minister described as his government’s “trade diversification strategy.” While in Vietnam, Farrell is expected to meet with Prime Minister Pham Minh Chinh to mark 50 years of diplomatic ties between the two countries.

Vietnam and the Philippines are major importers of Australia’s coal and barley, among other raw materials, making them important trade partners for the country after China imposed trade sanctions on a range of Australian exports in 2020. The restrictions came after a call by then-Prime Minister Scott Morrison for an international investigation into the origins of Covid-19, a topic which was viewed as extremely politically-sensitive by Beijing.

Since the election of the center-left Labor government in May 2022, relations between Australia and China have rapidly improved, with several senior ministers holding talks with their counterparts for the first time in years. Farrell said his own visit to Beijing to meet with Commerce Minister Wang Wentao was “not far away.”

Farrell said while Australia would have won its case against China in the World Trade Organization, the fallout might have taken years to play out. By negotiating instead, Farrell hoped the dispute could be resolved faster.

“I think the goodwill should, I’m hopeful, should translate to a resolution of the wine tariffs and for that matter, the other issues outstanding,” he said.