Australia Hopes for Resolution in Trade Dispute with China as Beijing Lifts Tariffs on Barley
Australia is hopeful that the ongoing trade dispute with China, which has severely impacted billions of dollars in commodity exports, could soon come to an end. This optimism follows the recent decision by Beijing to lift tariffs on Australian barley. The trade restrictions imposed by China on various Australian products, including coal, wine, and beef, have been part of broader disputes between the two nations.
Tensions between Australia and China have been escalating in recent years due to differences related to democracy in Hong Kong, human rights issues, and Beijing’s ambitions in the South China Sea and the Pacific. Last week, China’s Commerce Ministry announced its plan to eliminate the previously imposed 80.5 percent tariffs on Australian barley.
Australia has consistently maintained that these restrictions were punitive and tantamount to economic coercion. However, Chinese officials have emphasized that the tariffs were imposed due to valid technical reasons. Australian Trade Minister Don Farrell expressed his hope that similar sanctions on Australian wine exports to China would also be lifted soon.
Farrell stated on Monday, Our whole process over the last 15 months has been to try and stabilize our relationship with the Chinese government to get them to remove the trade impediments that have been a blockage in our relationship over a period of time. Bit by bit, that process has been working.
As part of its efforts to resolve the dispute, the Australian government is currently challenging China’s tariffs ranging up to 212 percent on Australian wine at the World Trade Organization. These Chinese restrictions also remain in place for Australian beef, cotton, and seafood exports.
Trade talks between the two countries are set to continue, with China’s Commerce Minister Wang Wentao agreeing to visit Australia, although no details have been released yet. Furthermore, Australian Prime Minister Anthony Albanese is planning to visit China later this year. It is worth noting that China represents approximately one-third of Australia’s global trade in goods and services.
The China-Australia Free Trade Agreement, which went into effect in December 2015, has contributed to Australia’s significant role as one of China’s largest suppliers of commodities, particularly iron ore, a crucial ingredient in steelmaking.
Recognizing the need for diversification, the Australian government has been actively seeking to expand its international trade partnerships beyond its heavy reliance on China. Initiatives are underway to explore trade opportunities with other countries such as India and Indonesia.
Australia remains hopeful that these recent developments will pave the way for a resolution to the trade dispute with China. Both countries have expressed a desire to stabilize their relationship and reestablish mutually beneficial trade ties. Nonetheless, it is crucial to approach this matter with caution, considering the complexities and underlying issues that have strained bilateral relations.
