Coronavirus: Simon Birmingham ready to fight in China barley dispute

Trade Minister Simon Birmingham is prepared to take China to the World Trade Organisation over barley dispute.

Trade Minister Simon Birmingham says Australia will consider all avenues to protect its barley farmers. Picture: Rohan Kelly

Trade Minister Simon Birmingham is prepared to take China to the World Trade Organisation after Beijing threatened to slap tariffs on Australian barley, heightening tensions between the countries over calls for an independent ­global review into the origins of COVID-19.

China’s commerce ministry is reportedly considering imposing tariffs on all barley imported from Australia, with Beijing due to conclude its 18-month anti-dumping investigation into Australian barley by May 19.

The standoff comes amid a month-long war of words between China and Australia over an investigation into the coronavirus outbreak, with Australia vowing to support an EU push for an inquiry at a World Health Assembly meeting this month.

Senator Birmingham said Australia would consider all avenues — including the WTO — to protect the rights of Australian farmers and stand up to China’s actions.

“We reserve all rights in relation to continuing to defend and uphold the integrity of Australian farmers and barley producers,” the Trade Minister said.

“We hope that we can, over the coming days, ensure a positive outcome and that is that Australian farmers and barley producers do not receive undue subsidies and do not dump their product on foreign markets. But if the case were to go against them, then we absolutely reserve our right to pursue all other avenues, including through the WTO.”

Canberra has been given 10 days to explain why China should not impose tariffs on Australian barley. Under tariffs of up to 70-80 per cent, the barley export sector — which has been affected by drought and trade to China ­reduced to $600m last year — would be unlikely to continue.

Senator Birmingham said while Australia respected China’s rights to undertake domestic investigations into anti-dumping matters, “we do not accept that there is a prima facie case, let alone a conclusive case, to find dumping by, or subsidy of, Australian producers”.

Following other diplomatic disputes in recent years, China imposed temporary restrictions and delaying tactics on Australian wine and coal products.

Opposition agriculture spokesman Joel Fitzgibbon and trade spokeswoman Madeleine King called on the government to quickly resolve the trade dispute and push for a “productive” relationship with China. “China is yet to finalise its decision, and the government must use the coming days to resolve this matter to protect Australia’s valuable barley ­industry. It is in the interests of both nations to have a productive trading relationship,” they said in a statement.

“Australia and China have a rich history of trade and investment, which has been extremely beneficial to both our nations.”

Australia proposed an inquiry­ into the origins of COVID-19 three weeks ago, provoking­ sharp criticism from China’s government, which remains­ highly sensitive about the early handling of the virus in Wuhan late last year and early this year.

Health Minister Greg Hunt said the government would support an EU motion calling for an independent investigation into the origins of coronavirus in China.

“We support the EU motion which includes an independent ­investigation, regulatory work on wet markets and also the potential for independent inspection powers,” Mr Hunt told Sky News.

Mr Hunt also said the decision to close the border to China against the wishes of the World Health Organisation was one of the most important decisions ever made by an Australian government, after he raised the issue of travel at a meeting of members of the global health body last week.

“We believe we made not just the right decision but one of the most important decisions made by an Australian government in decades,” he said.