Australia's barley industry responds to China's tariff measures
19 May 2020
The Australian barley industry has expressed its deep disappointment with the announcement by the People’s Republic of China to place punitive tariffs on Australian barley exports to China. This follows an anti-dumping and countervailing subsidy investigations initiated by China in November 2018.
The People’s Republic of China has imposed a dumping margin of up to 73.6% and a subsidy margin of up to 6.9%on all barley imported from Australia, effective from 19th May 2020, in response to its investigations.
These tariffs will disrupt and, most likely halt exports by artificially increasing the price of Australian barley imported to China until the situation is resolved. It is estimated this dispute could cost Australian grain industry and notably rural and regional economies at least $A500 million per annum.
For a number of years China has been Australia’s largest barley export market and Australia is the largest supplier of barley to China. This imposed duty makes Australian barley less competitive in to the Chinese market and has placed significant downward pressure on barley values offered to Australian growers.
China initiated anti-dumping and countervailing subsidy investigations regarding Australian barley exports in November and December 2018. The World Trade Organisation (WTO) definition of dumping is when exports are sold at a price lower than the exporting country’s domestic market, and/or lower than production costs which results in ‘injury’ to the importing country’s domestic production.
Australian exporters, industry bodies and government-provided extensive submissions to China’s Ministry of Commerce (MOFCOM) as part of the investigations. These submissions included information regarding every aspect of Australia’s barley industry, covering farm to consumer, data around export and domestic sales programs, company ownership and operational structures.
