China Strike Settlement with Australia in Their Barley Dispute
Australian and Chinese flags are seen at the third China International Import Expo (CIIE) in Shanghai, China November 6, 2020. REUTERS/Aly Song
Deals that the Australian government has made with China may result in the removal of barley tariffs that went into effect in 2020.
The foreign and trade ministries of Australia jointly declared on Tuesday that the agreement would pave the road for settling the issue.
In the upcoming three to four months, China will “undertake an expedited review of the duties,” according to Australia. Australia will halt its World Trade Organization (WTO) case with Beijing at this time.
Australia will reopen the WTO challenge if the levies are not removed at the end of the review period.
2020 saw China put tariffs on Australian barley of more than 80%, effectively preventing exports from reaching the market.
Beijing said that producers of barley received subsidies and dumped grain at a low price on the Chinese market. Canberra has refuted the charges.
Ties between the two countries deteriorated when China imposed the tax in 2020.
Canberra’s decision to forbid Huawei from establishing a 5G network in Australia infuriated Beijing.
Several Australian products, including wine, cattle, and coal, were subject to a number of trade levies and customs delays from China.
