The federal government is hoping that China’s move to drop tariffs on Australian barley will pave the way for Australian wine which still faces import taxes.
On August 4 the Chinese Communist Party (CCP) confirmed that it was no longer necessary to continue with the crippling taxes on Australian imports due to “changes in the market situation of barely in China.”
Under the Albanese government trade impediments have been reduced from $20 billion (US$13.1 billion) to $2 billion (US$1.3 billion) but the majority of Australian wine exported to China still face duties of more than 200 percent.
Trade Minister Don Farrell, a key figure in the talks with Beijing, described the barley decision as “another very positive step in the full resumption of normal trade between Australia and China.”
Farrell said the government has its sights set on the Chinese tariffs placed on Australian wine producers.
In 2021 import duties of more than 200 percent were applied to the majority of Australian wines exported to China.
“We intend to use this process as a template for resolving the issue in respect of wine which is still ongoing,” Farrell said.
Australia will discontinue its World Trade Organisation dispute against China over the tariffs, a case it had suspended in exchange for Beijing agreeing to a review.
“We would prefer to resolve all of our disputes with with China through discussion and dialogue rather than disputation,” Farrell told reporters on August 4.
Speaking on ABC TV, Farrell said the barley decision is significant in helping Chinese Australian relations.
“I think this is just one step along the way of stabilising our relationship with China,” Farrell said.
“We hope that persistence and perseverance will result in a successful outcome for all of the remaining products that we haven’t been able to get back into the Chinese market.”
Australian Grape and Wine head Lee McLean said the barley announcement was a positive step for the agriculture sector and the bilateral relationship.
“While there has been no change in the situation for Australian wine exports at this point, we hope this announcement may provide a template for removing import duties on Australian wine in due course,” McLean said.
