China Scraps Australian Barley Tariffs in Place Since 2020

China will scrap anti-dumping and anti-subsidy tariffs on Australian barley, effective from Aug. 5, China’s commerce ministry said in a statement, in the latest sign of improving ties between the two countries.

(Bloomberg) — China will scrap anti-dumping and anti-subsidy tariffs on Australian barley, effective from Aug. 5, China’s commerce ministry said in a statement, in the latest sign of improving ties between the two countries.

China imposed tariffs of more than 80% on Australian barley in May 2020, accusing its exporters of dumping on the Chinese market. The move came as bilateral ties were spiraling downward after then-Prime Minister Scott Morrison called for an international investigation into the origins of Covid-19. 

But since the election of the center-left Labor government in May 2022, communications between Canberra and Beijing have resumed and relations improved markedly. 

“In view of the changes in China’s barley market, it is no longer necessary to continue to impose anti-dumping duties and countervailing duties on imported barley from Australia,” China’s commerce ministry said. A spokesperson for Australian Trade Minister Don Farrell declined to immediately comment. 

Shares of Australian grain producers hit intraday highs after the news, with United Malt Group Ltd. rising as much as 0.6% and GrainCorp Ltd. up 0.7%. 

The value of Australian barley exports to China averaged around A$1.2 billion ($790 million) a year between 2014–15 and 2018–19, according to estimates from the Canberra government. 

In April, Beijing announced it would hold a three-month review into the barley tariffs, in return for which Canberra agreed to suspend its case against China in the World Trade Organization. 

Beijing sought a one-month extension of the barley review in July, meaning a decision was due by late next week. 

China’s demand for barley is increasing, both for high-end beer products and for livestock feed, where it is used as a substitute for corn.

–With assistance from Hallie Gu and Jackie Edwards.

(Updates to add value of trade, GrainCorp shares)

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