China’s Ministry of Commerce (MOFCOM) threatened to place tariffs of up to 80% on Australian barley producers for dumping as tensions between the two countries continue to escalate. China has given Australia ten days to respond to an 18-month anti-dumping investigation that looks into Australian grain imports since 2010.
China alleges that Australian farmers produced barley at a price that was lower than its “normal’ level between 2014 and 2016, and is thus considering two separate tariffs of 73.6% and 6.9% on Australian barley exports to China. MOFCOM argues that Australia unfairly subsidizes its farmers and that it engages in dumping. The Chinese ministry’s subsidy claims originate from Australia’s fuel rebate and drought support measures.
Australian barley exports to China were worth $1.5 billion in 2018, but fell to $600 million in 2019 due to a period of drought. China initiated an anti-dumping investigation into Australian barley exports in November 2018, a charge which Grain Producers Australian chairman Andrew Wiedemann believes was addressed before the World Trade Organization (WTO). However, in November 2019, Beijing extended its anti-dumping probe by six months.
Australian Trade Minister Simon Birmingham said the move has “no justification” as there is no reason to believe that “Australia’s farmers and barley products and barley producers are subsidized or are dumping their product in such ways”.
Grain Producers Australia, Grain Trade Australia, Grain Growers, the Grains Industry Market Access Forum (GIMAF), and the Australian Grain Exporters Council will work in tandem with the Australian government to respond to China’s allegations.
The tariffs being threatened by China would cripple Australia’s barley industry, with Australia exporting between $980 million to $1.3 billion worth of product to China per year. In fact, China alone accounts for more than half of Australia’s barley exports.
These events corroborate Australian Minister for Foreign Affairs Marise Payne’s claims that China is using “coercion” tactics to get PM Scott Morrison’s government to rescind its calls for an international investigation into the origins and spread of the coronavirus and into China’s culpability and complicity.
China’s Ambassador to Australia, Cheng Jingye, has said that Australia’s call for a global inquiry is “dangerous”, “politically motivated”, and that it will fail as it will not gather sufficient support among world leaders. He also warned that it could lead to a Chinese boycott in terms of students, tourism, and exports, a threat that China now appears to be making true on.
Image Source: CGTN
China Threatens Tariffs of up to 80% on Australian Barley Exports
It is likely in retaliation to Australia’s calls for a global investigation into COVID-19.
May 11, 2020
IMAGE SOURCE: CGTN