QUAMBATOOK farmer Brett Hosking is hopeful that tariffs on Australian barley may soon be removed as the Australian and Chinese governments seek a resolution to their trade dispute.
“I guess I would say I am cautiously optimistic – my goal as a grower is to get back into that market, trading barley to the Chinese market,” Mr Hosking told The Guardian.
China in May 2020 imposed tariffs of 80 per cent on Australian barley for five years.
It was claimed to be the result of an 18-month investigation by the Chinese Ministry of Commerce, alleging that dumping and subsidisation had occurred.
The Australia Government did not agree with China’s ruling and appealed the decision to the World Trade Organisation. A WTO ruling was due in the first quarter of this year.
But last week, Foreign Minister Penny Wong announced China had promised to conduct an “expedited review” of the tariffs over the next three to four months, and in return Australia would “temporarily suspend” its WTO action over the same period.
Mr Hosking believed removing the tariffs would be a win-win for both Australian producers and Chinese consumers.
“(China) are a long-time customer of ours,” he said
“It makes perfect sense that we are back in that market and giving them a product they love, that is geographically close and that they can buy a little bit cheaper because of its geography.
“As growers we are also extracting a premium because of that geography, so we are both sharing the benefit.”
For the three harvests tariffs were in place, Mr Hosking estimated growers across the Mallee lost on average $50 a tonne for their barley, as well as less of the crop being planted in general.
“I would hate to think that we get to the end of the three or four month (review period) and we still have any form of tariffs on Australian barley going into that market,” Mr Hosking said.
“I hope that we are far enough advanced with those conversations with China that we and the Australian Government have confidence … that we will be back in the market full-swing.”
Member for Mallee Anne Webster believed the removal of the tariffs would be a “positive step” for grain growers like Mr Hosking.
“These sanctions were not justified in the first place and I know many farmers across the Mallee will be waiting to hear the outcome on this,” Dr Webster said.
In a joint statement with Trade Minister Don Farrell and Agriculture Minister Murray Watt, Senator Wong said if the duties were not lifted by the end of the review period, the dispute with the WTO will resume.
“The Australian Government has been clear in our view that there is no justification for these duties and that it is in both countries’ best interest for all trade impediments to be removed,” she said.
