Australian Government reaches barley agreement with China

The Australian Government has reached an agreement with China to create a pathway towards resolving the dispute over Australian barley.

Since 2020, China’s 80.5% duties on Australian barley have blocked exports to the market, worth about $916 million in 2018/19.

The Australian Government has stood firm in its view that these duties are unjustifiable and that removing all trade impediments would be in the best interest of both counties.

Following recent constructive dialogue at all levels, Australia has welcomed China’s agreement to undertake an expedited review of the duties over a three-month period, with the possibility of extending to a fourth.

For the agreed review period, Australia has agreed to temporarily suspend the World Trade Organisation (WTO) dispute as the dialogue took place in parallel to Australia continuing to prosecute its national interests through the WTO.

If, by the end of the review period, the duties are not lifted, Australia will resume the dispute in the WTO. The trade disputes system encourages bilateral resolution where possible.

The government remains confident in the outcome for Australian wine at the WTO. If the agreement is successful in providing a pathway for lifting duties on barley, it should lead to a similar process removing trade barriers for wine.

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