China barley breakthrough as tariffs lifted after three years

China's commerce ministry confirmed the news today.

In a statement obtained by ACM Agri MOFCOM ( the Chinese department of commerce) ruled that in view of the changing situation in China's barley market, it was no longer necessary to continue to impose anti-dumping duties and countervailing duties on imported barley originating in Australia.

MOFCOM said it had submitted a proposal to the Tariff Commission of the State Council to cancel anti-dumping duties and countervailing duties, and the Tariff Commission of the State Council decided to terminate the collection of anti-dumping duties and countervailing duties on imported barley originating in Australia from tomorrow.

China last month applied for another month to decide whether it would drop its onerous 80 per cent tariffs on Australian barley, implemented in May 2020 in response to allegations of Australian dumping.

The Australian government took the matter to the WTO, but this action was postponed in favour of bilateral negotiations between the two parties.

China was supposed to have completed its review into whether it would drop the tariffs in mid-July, but then applied for a month's extension, which the Australian government agreed to.

The deadline for China's review was next Friday but news of its decision to officially drop the tariffs came out today.

Grain Producers Australia southern director Andrew Weidemann said it was good news for Australian grain growers and exporters.

"Its good to see that we have been able to resolve the situation and that we will have access to a large, freight advantaged market," he said.

In a joint statement, Trade Minister Don Farrell, Foreign Minister Penny Wong and Agriculture Minister Murray Watt said the outcome affirmed the calm and consistent approach the Albanese Government has taken.

"The Australian government's approach has been to cooperate with China where we can, disagree where we must and engage in our national interest. The outcome on barley reflects that approach," the statement said.

"The removal of these duties means that Australia will now discontinue legal proceedings at the WTO. This outcome demonstrates the importance of the WTO dispute mechanism in defending the interests of Australia's world-class producers and farmers.

"We have been clear that we expect a similar process to be followed to remove the duties on Australian wine. In the meantime, we are continuing to pursue our wine dispute at the WTO and remain confident in a positive outcome."

Lifting the ban opens the door for Prime Minister Anthony Albanese to visit China and meet his counter-part Xi Jinping.