Australia will take its biggest trading partner, China, to the World Trade Organisation (WTO) alleging China's 80 per cent tariff on Australian barley imports is illegal. Market and policy trends may also have contributed to China’s decision to impose the trade barriers. Australian barley exports to China worth AU$1.4 billion (US$960 million) were shaken in October 2018 when China opened an anti-dumping investigation. On top of that, Australia accounted for a large proportion of total barley imports – up to 80 percent in some years – which also contravenes Chinese policy to diversify import sources and reduce exposure to “unsecure” or “unstable” sources. “Australian grain growers and farmers are not subsidized, they don’t dump their products on global markets and we clearly have the evidence to mount a strong case,” Birmingham said. At least 10 people have so far been confirmed dead and more than 200 injured. SYDNEY - Australia will ask the World Trade Organization to investigate punitive Chinese tariffs on barley imports, it said Wednesday, in a significant escalation of tensions between the two nations. Australia will launch a formal appeal to the World Trade Organization (WTO) later on Wednesday seeking a review of China's decision to impose hefty tariffs on imports of Australian barley, Minister for Trade Simon Birmingham said. Australian barley exports to China have effectively been halted since the tariffs were applied with the price artificially increased, making it uncompetitive in the Chinese market. To mitigate losses, it is anticipated that Australian barley will be diverted away from China towards alternative, lower-value markets, including the lower-value … By Eryk Bagshaw. China rejected claims that domestic corn and wheat subsidies contributed to the decline of barley production. The trade came to a grinding halt in May 2020 when China imposed tariffs totaling 80.5 percent. Singapore’s hawker culture has been recognized by UNESCO, but there are questions about its sustainability. Demand for feed grains declined dramatically in 2019 due to African Swine Fever, which led to a cull of half of China’s 450 million pigs. Sydney, Australia, Dec 16 (efe-epa).- Australia will appeal to the World Trade Organization (WTO) to settle a dispute over China’s decision to impose stiff tariffs on its barley at the beginning of the year amid a climate of growing trade tensions between Beijing and Canberra. China's 80% tariff on barley - imposed in May - was the first Australian agricultural export to be sanctioned this year, and came after Chinese trade officials alleged illegal dumping practices. Read more at The Business Times. “Australia and Australian agriculture is heavily reliant on trade, with more than 70 per cent … SYDNEY (Reuters) -Australia launched a formal appeal to the World Trade Organization (WTO) on Wednesday seeking a review of China’s decision to impose hefty tariffs on imports of Australian barley. Got a confidential news tip? The effective block on sales to China also comes as Australian barley production is expected to hit nearly 12 million tonnes this crop year, after rain revived some of the biggest growing regions following years of drought. Figure 1. China put an 80.5 per cent tariff on Australian barley in May, alleging dumping The final findings were that domestic barley production and logistics could be developed to fill the import gap and that the anti-dumping measures would protect farmers, national economic security, agricultural security and the healthy development of China’s barley industry. China effectively ended imports of Australian barley in May by putting tariffs of more than 80% on the crop, accusing Australia of breaching WTO rules by subsidizing barley production and selling the grain in China at below production cost. However as shown in Figure 2 above, Chinese barley production has been in decline for decades. National Farmers’ Federation (NFF) president Fiona Simson said the NFF supported actions to promote and uphold the rules of the WTO. The Chinese beer industry is over-supplied by low-quality “water” beer and consumption is declining. Accession to the WTO has reduced quotas and tariffs on agricultural imports but, with a history of conflict and famine, China remains preoccupied with food security. The Australian barley industry has expressed its "deep disappointment" with the news that China will place tariffs of up to 73.6 per cent on Australian barley exports and called on … China ignored extensive price data submitted by the Australian side. India finally has an investor-friendly image after almost a decade and should strive to maintain that. Wine joins beef, coal, barley, seafood, sugar and timber on the list of goods impacted by growing tensions between Australia and China. The emergence of a much more contagious variant of COVID-19 comes as Australia rolls out vaccines. Wheat joins a long list of commodities whose imports from Australia have been effectively banned by China as it flexes its geoeconomic muscle. A good start would be to challenge China’s anti-dumping case in the WTO to uphold rules-based trade. Figure 2. Even if more recent declines are related to imports, the uncompetitiveness of small-holder barley production in China compared with large-scale production in Australia does not constitute dumping. The farmers' protests outside New Delhi have cast a spotlight on a traditionally overlooked group: the women who keep India's farms running. Australia to take China to WTO over barley tariffs Australia's barley exports to China had been worth around US$1 billion a year before a recent drought. Barley was slapped with tariffs of over 80% in May after China accused Australia of dumping the grain and subsidizing growers. Updated December 16, 2020 — 1.42pm first published at 12.51pm. Key … China has imposed a massive 80 per cent tariff on Australian barley imports from today, saying the product has been imported against trade rules. “This is the logical and appropriate next step for Australia … Australia to take China to the WTO over barley tariffs. But it did lead to massive imports of corn substitutes not protected by quotas used for livestock feed and brewing – including barley. Acknowledging the appeal may take years to be resolved, Birmingham told reporters Australia would also request formal consultations with China regarding dumping and other … The Australian barley industry said it was deeply disappointed with China's "punitive tariffs" and called on the Morrison government to immediately take the matter to … But others in the international trade community saw it coming and say the origins and potential ramifications of the dispute run much deeper. As China imposed steep tariff barriers on the Barley imports from down under, the Australian Barley producers stared at a huge sales gap of 3.4 million tonnes of fresh crop. Australia denies the allegations it subsidizes local barley production and Birmingham said it will seek formal intervention from the WTO. Chinese barley imports surged from 2013-18, while domestic production continued a long-term decline. © 2021 Diplomat Media Inc. All Rights Reserved. wool), industry interests were over-ridden by powerful agricultural and strategic interests, represented by the Ministry of Agriculture and probably adjudicated by the State Council. Starting in May, China slapped crippling tariffs on Australian barley; banned beef from four major meat processors; launched an anti-dumping … Amid worsening geopolitical tensions, the economic relationship will never be the same again. In a significant escalation of tensions between the two nations, Australian Trade Minister Simon Birmingham on Wednesday announced the decision, saying Beijing's 80-percent surcharge on barley imports from Australia "lack basis" and "are not underpinned by facts and … All Rights Reserved. Unlike in some other trade decisions (e.g. A presidential election in Kyrgyzstan and a parliamentary election in Kazakhstan kick off 2021 in Central Asia. About The case has been widely reported as economic coercion (against Australia’s call for an inquiry into COVID-19), retaliation (for Australian anti-dumping measures against China), and a “trap” by China (to shore up steel exports). Birmingham said Australia would formally ask the WTO to intervene on Wednesday. Further, Australia has warned China that its alleged ban on Australian coal contravenes WTO rules, according to Financial Times. “U.S. In any case, barley is virtually all dryland in Australia. This is an anathema to China’s food security and self-sufficiency policy. In the case of the barley tariffs, the underlying driver is food security. North Korea insists there have been no coronavirus cases in the country. There are parallels with corn and soy from the United States. Click here to subscribe for full access. Australia-China relations have hit 'rock bottom': Orient Capital Research. The differentials with world markets didn’t increase corn imports because they are controlled by tariff rate quotas (designed partly to reduce reliance on U.S. corn). Enjoying this article? About 70% of Australian exports of the grain typically go to China, Australian data show. The broader lesson from the barley case is that Australian agriculture faces significant and rising risks through high trade exposure to China. Australia is mulling World Trade Organization (WTO) action on China’s decision to slap export tariffs on the country’s barley exports, Trade Minister Simon Birmingham said on Sunday. We want to hear from you. Total support to the farm sector in China, the EU, the U.S., and Australia, as a percent of GDP. Among the inconsistencies in the claim is that the price of Australian barley sold to China – Australia’s largest market – was compared with the much higher price of barley sold to Egypt, which ranks 23rd out of 27 export markets for Australian barley. In the absence of quotas to control barley imports and sources, China turned to anti-dumping tariffs. China also claimed that the dumping caused damage to its domestic industry between 2014 and 2018, citing declines in land planted to barley, production, and the (already negative) profits of barley farmers. The announcement comes as confirmed COVID-19 infections continue to spike across the archipelago. Australia's souring relations with China have grown more bitter with the Morrison government given 10 days to stop the nation's barley producers being slapped with tariffs of … This risks escalation, but the risks are manageable for most Australian agricultural industries. Us, Write In May, Beijing imposed tariffs of 80 per cent on Australian barley, alleging imports were sold below cost in China and that Canberra had subsidised growers in contravention of WTO rules. China hit Australian barley with tariffs of over 80% in May after accusing the country of dumping the grain and subsidizing its growers. Dumping is when goods are sold below a normal value — for example, below the cost it takes to produce them — which gives producers an advantage over the foreign markets they sell to. This is one district’s story. Barley was slapped with tariffs of over 80% in May after China accused Australia of dumping the grain and subsidizing growers. Save. But there are other factors at play. Restrictions on coal, lobsters, timber, red meat and cotton exports from Down Under have also been placed. Importantly, most barley is produced in remote and poorer parts of China. In May, China imposed tariffs of 80.5% on Australian barley exports, which were made up of a 73.6% anti-dumping duty and a 6.9% countervailing duty. © 2021 CNBC LLC. power can inadvertently shift politics even in regions like Central Asia where the United States is remote.”. With China’s tariff on Australian barley - an anti-dumping and anti-subsidy tariff totalling 80.5% - due to run for five years, the disruption to trade routes could be long-running. The documents don’t specify the mechanisms by which Australia may have dumped the grain to incur a 6.9 percent anti-subsidy tariff. The WTO appeal threatens to further stoke bilateral tensions that have already seen China impose tariffs on a range of Australian commodities, with diplomatic communication limited. It comes after Scott Morrison, the Australian … China has actually introduced two tariffs on the import of Australian barley — the first is a hefty 73.6 per cent, because it claims Australia sold barley into China for cheaper than it … Australia will launch a formal appeal to the World Trade Organization (WTO) later on Wednesday seeking a review of China’s decision to impose hefty tariffs on imports of Australian barley, … China is preparing to slap steep tariffs on Australian barley imports after an 18-month anti-dumping investigation. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Hong Kong wine lovers could soon reap an unexpected benefit from the souring of relations between mainland China and Australia: their favourite plonk from down under may become a bit cheaper.Australian reds and whites have found themselves on an expanding list of products hit by sizeable import tariffs in one of their most lucrative markets, as Beijing has upped the ante in a … CHINA has sparked fears of a global trade war after imposing an extraordinary 80 per cent tariff on Australian barley exports. Just over 2.5 million tonnes of Australian barley was shipped to China in 2018-19, about 700,000 tonnes to Japan, 370,000 tonnes to Thailand, 350,000 to Vietnam and 100,000 to South Korea. China also this week suspended beef exports from four Australian abattoirs. China effectively ended imports of Australian barley in May by putting tariffs of more than 80% on the crop, accusing Australia of breaching WTO rules by subsidizing barley production and selling the grain in China at below production cost. The impact on the Australian barley industry from China's new tariff will be from the loss of trade with China, a premium market. Western Australian Farmers Federation president Rhys Turton holds barley seeds in his fields near York. Get this delivered to your inbox, and more info about our products and services. “We are highly confident that based on the evidence, data, and analysis that we have put together … The China Alcohol Association made a submission to the investigation arguing that the anti-dumping measures would reduce the industry’s access to high-quality malting barley and increase the price of corn. Sign up for free newsletters and get more CNBC delivered to your inbox. MOFCOM argued that Australian exporters sold barley to Chinese importers at below the cost of production. The Chinese anti-dumping tariffs on Australian barley have been widely interpreted as revenge for Australia’s call for a COVID-19 investigation. “Australian grain growers and … China accused Australia of dumping the grain and subsidizing growers and slapped tariffs of over 80% on the Australian barley in May. [SYDNEY] Australia launched a formal appeal to the World Trade Organization (WTO) on Wednesday seeking a review of China's decision to impose hefty tariffs on imports of Australian barley. Australia will take China to the World Trade Organisation tonight over its hefty tariffs on barley imports. Administrative decentralization has led to a vast improvement in the delivery of healthcare in Nepal. China has slapped tariffs on Australian wine and barley exporters. Australia will challenge China’s tariffs on our barley exports through the independent umpire, escalating the bitter stoush that has imperilled trade worth billions of dollars. Australia demands sit-down talks with China and lodges a World Trade Organisation dispute over huge barley tariff. China put an 80.5 per cent tariff on Australian barley … As relations soured this year after Canberra proposed an independent investigation into the origins of the coronavirus pandemic, first reported in central China last year, Beijing in May imposed five years of anti-dumping and anti-subsidy duties totaling 80.5% on Australian barley — effectively stopping a billion-dollar trade in its tracks. Beijing imposed a massive 80 per cent tariff on Australian barley imports in May after an investigation accused … The parade, which included a new submarine-launched ballistic missile, closed out the eight-day Workers' Party congress. Birmingham said Australia would formally ask the WTO to intervene on Wednesday. A photo taken on Dec.14, 2020 shows a paddock of barley being harvested on a farm near Inverleigh, some 100kms west of Melbourne. In the 2010s, Chinese agricultural subsidies were directed mainly to production and price support for rice, wheat, and corn. However a new research report argues that these factors are really just triggers for a measure that China wanted to take anyway. By 2015 China had 250 million tonnes of corn in storage – half the worlds’ reserves – bought at up to double world prices and taking years to draw down. With China’s tariff on Australian barley - an anti-dumping and anti-subsidy tariff totalling 80.5% - due to run for five years, the disruption to trade routes could be long-running. In other words, the barley tariffs are a classic case of protectionism. Source: OECD. Some say it is retaliation for Australia's push for an inquiry into the origins of COVID-19. China threatens massive tariffs on Australian barley 7 months, 1 week ago China threatens massive tariffs on Australian barley Lloyd George, Ag Scientia 11 May 2020, 1:17 p.m. SYDNEY - Australia will ask the World Trade Organization to investigate punitive Chinese tariffs on barley imports, it said Wednesday, in a significant escalation of … China has slapped an 80 per cent tax on all barley grain imported from Australia. A Division of NBCUniversal. The Australian barley industry said it was deeply disappointed with China's "punitive tariffs" and called on the Morrison government to immediately take the matter to the WHO. China hit Australian barley with tariffs of over 80% in May after accusing the country of dumping the grain and subsidizing its growers. "Australia has an incredibly strong case to mount in relation to defending the integrity and proprietary of our grain growers and barley producers," Birmingham said. NFF support National Farmers’ Federation (NFF) president Fiona Simson said the NFF supported actions to promote and uphold the rules of the WTO. Malting barley bound for Vietnam is loaded on to the MV Global Phoenix at CBH’s Albany terminal. The differences can be explained by varying volumes and grades of barley. This was heightened in the global food crisis of 2008, when Chinese policymakers were convinced that the world had entered into a new era of food shortages and inflation. The Australian barley crop now being planted is forecast to produce roughly 9 million tonnes (Mt) and without the tariff, China could be expected to buy around half that. The case bought by the China Chamber of International Commerce and the Ministry of Commerce (MOFCOM) is outlined in documents on the investigation and the ruling. The Chinese government embassy in Australia didn't immediately respond to an email requesting comment. Australia’s barley exports to China had been worth around US$1 billion a year before a recent drought, and are used most notably in beer-making. Just $5 a month. It comes after Scott Morrison, the Australian Prime Minister, demanded… China's economic coercion against Australia is lending fuel to calls for a boycott of the Beijing 2022 Winter Olympics. The Australian government says it may take China to the World Trade Organisation (WTO) over a barley tariff dispute, just days after China imposed tariffs of over 200% on Australian wine imports. High Australian barley exports over the 2010s became a serious threat to China’s food self-sufficiency and import diversification policies, which it arrested through a dubious anti-dumping case. China’s reliance on barley imports, especially Australia’s. After an 18-month investigation, China imposed a total tariff of 80.5 per cent on Australia’s barley exports in May, made up of an anti-dumping duty of 73.6 per cent … And of course the opening of the investigation coincided with the deteriorating China-Australia bilateral relationship in 2018 and the ruling coincided with Australia’s announcement of its demand for inquiry into COVID-19 in 2020. Trade Minister Simon Birmingham announced the decision, saying Beijing’s 80% surcharge on barley imports from Australia “lack basis” and “are not underpinned by facts and evidence,” adding that similar action … CHINA has sparked fears of a global trade war after imposing an extraordinary 80 per cent tariff on Australian barley exports. Get briefed on the story of the week, and developing stories to watch across the Asia-Pacific. Scott Waldron is a Senior Research Fellow at The University of Queensland’s School of Agriculture and Food Sciences. 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