(Australia) China ends double anti-tariff on Australian barley

The Ministry of Commerce of China issued Announcement No. 29 of 2023 on August 4, reexamining and ruling that it is no longer necessary to continue the implementation of trade remedy measures related to imported barley originating in Australia. The Customs Tariff Commission of the State Council decided to terminate the imposition of anti-dumping duties and countervailing duties on Australian barley from August 5. The implementation of more than three years of Australian barley against China's "double anti" measures officially ended.

From 19 May 2020, China imposed a 73.6 per cent anti-dumping duty and a 6.9 per cent countervailing duty on imports of barley originating in Australia, for a total of 80.5 per cent, for a period of five years. As a result, Australian barley basically withdrew from the Chinese market: in 2018-19 before the levy, Australian barley exports to China were about A $0.916 billion; Australia estimates that tariffs cause about US $1 billion a year to the Australian barley industry.

In March this year, the China Liquor Industry Association filed an application for review, and the Ministry of Commerce filed a case for review on April 15. Australia suspended its dispute litigation in the WTO (DS598 case) during the same period. The Ministry of Commerce reviewed and determined that the situation in China's barley market has changed and it is no longer necessary to continue taxation. The Australian side welcomed the ruling, which Australian Trade Minister Farrell called a positive step in the economic and trade relations between the two countries.

Analysts believe that the abolition of barley tariffs provides a reference for the treatment of other items of Sino-Australian economic and trade frictions, and the trend of relevant measures for Australian wine and other products is worthy of attention; for the domestic beer and barley import industry, the diversification of import sources will also expand accordingly.

Source: China Ministry of Commerce Announcement No. 29, 2023; Australian Department of Foreign Affairs and Trade Statement; People's Daily Online, August 4, 2023.