China adds six months to Australian barley anti-dumping probe

Australian grain growers face a market risk, with China announcing it will extend its investigation into barley export dumping.

Uncertain times: China indicates the Australian barley dumping probe will be finalised on May 19 next year. Picture: Glenn Milne

CHINA is extending its anti-dumping investigation into Australian barley exports by six months, causing “uncertainty” for Australian growers as harvest approaches.

The Australian barley industry said it was “concerned” over China’s announcement that the investigation — which is looking into whether Australian barley was “dumped” into the Chinese market below the cost of production — would be extended until May 19 next year.

In a joint statement from peak industry representatives, the Australian grain industry said it was “confident” that dumping had not occurred, but the likely outcome of the investigation was “unknown” at this time.

“Possible outcomes could include the imposition of provisional import tariff/duties on Australian barley exports to China,” the statement said.

“Australian growers should be aware of this market risk as they approach harvest and next year’s planting period.”

China initiated an anti-dumping investigation regarding Australian barley exports in November last year.

Under the World Trade Organisation’s process, anti-dumping investigations can be extended for a further six months beyond the initial 12 months of the investigation.

The statement indicated China was Australia’s largest export market and Australia was the largest supplier of barley to China.

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“This investigation has created uncertainty within the Australian grain market that has resulted in downward pressure on Australian barley prices,” the statement said.

It stated Australian exporters, industry bodies and government provided “extensive responses” to China’s Ministry of Commerce as part of the investigation.

“We are confident that the claim of dumping, causing injury to China’s domestic barley industry is unsubstantiated, the Australian grain industry operates in an open, commercial and competitive open market and the notion of dumping is not consistent with the commercial realities of the Australian grain industry,” the statement said.

Federal Trade Minister Simon Birmingham said the decision was “deeply disappointing”.

“This deferral of a decision is deeply disappointing given the compelling evidence provided by Australia during this investigation clearly refute the claims made,” Senator Birmingham said.

“Whilst we respect China’s right to undertake domestic investigations into anti-dumping matters, their investigations should be concluded as soon as possible to remove any uncertainty for our industry and their Chinese partners.”

“We continue to raise this matter at the highest levels to mount the strongest possible case to resolve this matter urgently and to uphold the integrity of our world leading barley producers.”

Industry representatives encouraged growers to “consider their specific circumstances” and seek advice from their independent market advisers or consultants in regards to their grain marketing and crop rotation options.