Cargo ships loaded with Australian barley en route to China are rerouting to other countries as the steep tariffs imposed last week continue to disrupt trade agreements.
Australian farmers and exporters are upbeat about finding new trade partners for surplus barley as improved agreements are made with other countries. However, existing scheduled deliveries are encountering difficulties and are scrambling to dispatch at alternative destinations.
According to data from My Ship Tracking, cargo ship Eco Dynamic departed from Fremantle Port, near Perth, carrying about 20,000 tonnes of barley. The Malaysian flagged vessel was heading for China but had to redirect to Kagoshima, south Japan.
According to data from broker IKON Commodities and Bloomberg ship-tracking information, the vessel departed from Lincoln near Adelaide, stating that there are around five ships originally destined to China with Australian barley.
The Chinese Communist Party’s (CCP) 80 percent tariffs on Australian barley imports came into force on May 18 after conducting its inquiry into anti-dumping and subsidiary claims.
The Australian government and barley industry have jointly rejected the basis of the CCP’s claims.
GrainGrowers chairman Brett Hosking has said he wants to pursue diplomatic negotiations with China, then maybe appeal to the World Trade Organization.
“The first response before we do anything is to pursue diplomatic negotiations, and the next step to look at a domestic appeal within China’s legal system, and maybe the WTO after that,” Hosking said.
“We have 60 days from May 18 to lodge an appeal within China’s judicial system, and they have 90 days to respond.”
- Senator Simon Birmingham, Canberra, Australia, May 14, 2020. (Sam Mooy/Getty Images)
“Well this isn’t about keeping a tally or about doing things in a tit for tat way,” Birmingham replied.
He reiterated that every country has its anti-dumping system and that China’s claims have no evidence. He also indicated that the next steps could be a WTO appeal.
The evidence for the duty tariffs is yet to be made public.
As Australian barley exporters look to advance trade relations with Japan and countries within the Arabic region, they are also looking to make agreements with India and Indonesia.