May 11, 2020
The Australian trade relationships with China faces further disturbance with a threat of charges of over 80 per cent on imports lurking on Australian barley produce.
The action of enforcement is based on accusations by the Chinese government that Australia has dumped cheap barley into the country. This exim has added to the ever increasing tension between the two countries over the spread coronavirus pandemic.
In lieu of the investigations about the spread of the virus, China threatened to withdraw support from the nation’s major export industries after Australia began tracking an independent review of the origins of the virus.
On 19th May, China is adamant and is set to release the results of its dumping investigation that would probably violate World Trade Organization (WTO) rules.
David Littleproud, Australian Minister for Agriculture has repudiated the accusations, and is ready to take the issue to the WTO if China proceeds with levying tariffs, while Trade Minister Simon Birmingham said the move is the matter of great concern and has “no justification”.
Birmingham said the government is working with the Australian grains industry to mount the strongest possible case against the 18-month anti-dumping investigation.
“Every country has a right to apply tariffs in relation to matters of dumping,” Senator Birmingham informed the media.
“But we are quite clear and firm in our view that there is no justification to find that Australia’s farmers and barley producers are subsidized or are dumping their product in such ways.”
Barnaby Joyce, a former Nationals Leader, opined that China’s tariff threat is form of payback for Australia’s supporting review to coronavirus’ origins.
“This is a case of payback,” he said, adding that the coronavirus investigation is justified.
Barley cultivation accounts for approx one-third of grain production in Australia, and China accounts for about 13 per cent of total grain exports.
IBIS World experts fear that the tariffs would effectively end barley trade with China, which is worth hundreds of millions of dollars.
‘China’s proposed tariffs would have a significant effect on Australian barley growers, as China is Australia’s single largest export market for grain. While China’s recovery from the COVID-19 outbreak has supported demand for locally grown barley in recent months, political tensions could cause the industry’s performance to deteriorate over the next five years,’ said IBISWorld senior industry analyst, William Chapman.
Australian farmers cultivating food grains have faced instable conditions over the past five years, with severe drought and wild bushfires bringing farmers to devastating stage.