China may impose tariffs on barley exports of up to 80 per cent

China has flagged tariffs of up to 80 per cent on Australian barley exports, in a move that the Federal Government says is “unjustified” and has left it “deeply concerned”.

Shrinking trade: Barley bound for China is loaded into containers at Dooen in 2016. The volume exported to China has dropped considerably since.

AUSTRALIA’S barley growers fear China will slap hit barley exports with tariffs up to 80 per cent.

The grains industry united to raise the alarm today, prompting Trade Minister Simon Birmingham to say he was “deeply concerned” by a move the Federal Government argued had “no justification”.

It comes amid growing tensions between the two countries, after China warned of a boycott of Australian products in response to Australia pushing for a global investigation into the origins of the coronavirus pandemic.

The potential tariffs follow an 18-month long anti-dumping investigation by China into Aussie barley exports — on the basis of alleged subsidies to Australian growers — due to conclude by May 19.

In a joint statement today, the grains industry stated it understood the “yet-to-be finalised tariffs may include a dumping margin of up to 73.6 per cent and a subsidy margin of up to 6.9 per cent”, to which Australia has 10 days to respond.

“Australian barley exporters will continue to co-operate with the Chinese Government and work closely with the Australian Government,” the statement read.

Australia was previously the largest supplier of barley to China, exporting almost 6.5 million tonnes in 2017-18. But that dropped to about 2.4 million in 2018-19, due to the ongoing drought and the anti-dumping investigation, which began in November 2018.

Mr Birmingham rejected any suggestion of “undue government subsidies”, adding that Australia has fully co-operated with China’s investigation.

“Australia’s farmers and barley producers are some of the most competitive in the world because they embrace the use of technology, the best practice farming that they possibly can, and they get their product out to market at the lowest possible price in an entirely commercial way,” he said.

“We are quite clear and firm in our view that there is no justification to find that Australia’s farmers and barley producers are subsidised or are dumping their product in such ways.”

Asked if he believed the threats amounted to economic coercion, Mr Birmingham said: “Well, it would certainly amount to a finding that we believe is not based on the evidence available.”

Mr Birmingham said Australia would continue working with China, but reserved its right to appeal “should the final decision go against our barley producers”.

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