China lifts additional import duty on barley from Australia

China lifts additional import duty on barley from Australia

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Ministry of Commerce of China announced on the removal of the anti-dumping duty on the import of barley from Australia, introduced in mid-2020. The decision comes into force on 5 August.

China imposed additional duties on a number of Australian commodities in mid-2020 at the height of the crisis between the two countries. First the customs authorities suspended part of the Australian supply of beef and barley, saying that they do not comply with PRC health regulations. And later they announced the introduction of an additional 80% duty on part of the supply of barley from Australia. The Chinese authorities explained this decision by dumping by several Australian manufacturers. Finally, in early November 2020, China suspended imports from Australia of several product categories at once, including coal, copper, sugar and lobsters. In November China raised customs duties on Australian wines to 212%, and in early December restricted imports for two of Australia’s leading suppliers of mutton, JBS and the Australian Lamb Company. All of these moves prompted Australia to file a complaint against China with the World Trade Organization (WTO).

The situation began to change after the first in many years visit Australian Minister of Foreign Affairs to China at the end of 2022. In March 2023 China stripped off all restrictions on coal imports.

The PRC Ministry of Commerce said in a statement today that “it is no longer necessary to continue to impose anti-dumping duties and countervailing duties on imports of Australian origin barley due to changes in the Chinese barley market.”

“We welcome this decision, which paves the way for our barley exporters to return to the Chinese market, which will benefit Australian producers and Chinese consumers,” the joint statement Australian Commerce Minister Don Farrell, Foreign Secretary Penny Wong and Agriculture Minister Murray Watt. “The removal of these duties means that Australia will now end WTO litigation.”

Kirill Sarkhanyants

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