Chinese Traders to Gradually Restart Australian Barley Imports

Chinese traders are poised to resume importing Australian barley following an announcement by China’s Ministry of Commerce (MOFCOM) stating an end to anti-dumping and countervailing duties on the crop, effective from Saturday. Industry sources informed the Global Times about the development, which is seen as a response to the changing market dynamics and a step towards normalizing trade ties between the two nations.

According to the MOFCOM’s statement released on Friday, the imposition of duties on barley imports from Australia is no longer deemed necessary, considering the shifts in the Chinese barley market. A manager from a major Chinese grain trading company revealed that the firm had observed the policy change and intends to gradually resume Australian barley imports. The company primarily imports Australian barley for domestic beer breweries, benefiting from its competitive pricing and shorter transportation distance.

During the period of halted Australian barley imports, the company turned to alternative sources such as France and the Black Sea region, both significant barley producers. However, due to its cost-effectiveness and convenience, Australian barley is expected to regain its appeal and see increased imports in the coming period.

Another domestic trader shared that their company had temporarily shifted to importing Canadian barley, which offered similar quality at a more affordable price. Only once their existing Canadian barley inventories are used up, they may reconsider resuming imports of Australian barley.

Barley holds significance in China for beer brewing and animal feed production, with Australia being the primary source of barley imports in 2019. However, in May 2020, MOFCOM imposed substantial anti-dumping and countervailing duties on Australian barley, resulting in a significant decline in imports from the country.

The decision to end the barley duties is anticipated to have a positive impact on China-Australia relations, fostering bilateral trade and economic exchanges. This development comes as both sides adopt a more pragmatic approach to address trade frictions through open communication and consultation.

Nonetheless, while the improvement in bilateral relations sets a foundation for resolving trade issues, it may not lead to instant resolutions. Some of these issues involve technical matters, such as the dumping concerns related to certain Australian goods in China. Both countries’ commerce departments are expected to continue addressing these matters through step-by-step discussions at the working level to facilitate further progress in resolving trade issues, including those concerning wine.