‘Cautiously optimistic’

BY ABBY WALTER

Alucrative export market could re-open for Wimmera growers, as China resumes talks with Australia to remove tariffs on barley.

China imposed 80 percent tariffs on Australian barley for five years, in May 2020.

China will conduct an expedited review of the tariffs during the next three months. In return, the Australian Government will suspend its World Trade Organisation appeal.

There is the option of a fourth month for review if necessary.

National Farmers Federation vice-president David Jochinke said World Trade Organisation appeal proceedings between China and Australia had paused.

“China has reinstated talks with Australia to remove tariffs on barley and other goods,” he said.

“Initially, China claimed Australia was subsidising costs of barley, which was disadvantaging other markets.

“Australia has evidence that we weren’t dumping barley on the market and was going to defend that.

“If China doesn’t start taking our goods, we can reinstate proceedings.”

Mr Jochinke said if tariffs were removed there would be more op- portunity and a strong base for Wimmera farmers growing barley.

“China was a strong market, buying just shy of 60 percent of our barley, so it was very lucrative,” he said.

“The tariffs made barley unattractive for the market to purchase.

“We were very reliant on that market and it hurt Australian farmers when they stopped taking our product.”

Member for Mallee Anne Webster said she was cautiously optimistic for Australian barley growers following the announcement.

“China is an incredibly important trading partner for us and the removal of these tariffs would be a positive step for our growers,” she said.

“These sanctions were not justified in the first place and I know many farmers across the Mallee will be waiting to hear the outcome on this.”

Australian barley exports to China peaked at 6.3-million tonnes in 2016-17.

National farmer collective, GrainGrowers, chair Rhys Turton said China had been a key market for Australian grain and a resolution was in the best interests of both countries.

“This is a step in the right direction for trade between our two countries and highlights the value of the WTO process to encourage mechanisms for bilateral dispute resolution,” he said.

IN DISCUSSION: National Farmers Federation vice-president David Jochinke is hopeful of a positive outcome with China after reinstating talks to remove tariffs on barley and other goods.

“It is heartening to see a resolution of constructive dialogue between the two governments, and we are hopeful that this process will result in a positive outcome for Australian growers.”

Mr Jochinke said the tariffs had made Australia sharper when it came to trade and taking all of its ‘eggs out of one basket’.

“From this experience, we know we need to be the preferred supplier for as many countries as possible and we have stepped up in that area,” he said.

“When one country does not want to, or cannot offer the premiums we