Last Updated: August 04, 2023, 10:41 IST
Australia on Thursday announced its decision to withdraw a case against China at the World Trade Organisation (WTO) following Beijing’s removal of significant tariffs on Australian barley exports. “We welcome this outcome, which paves the way for our barley exporters to re-enter the Chinese market — benefiting Australian producers and Chinese consumers,” Foreign Minister Penny Wong said in a statement.
In 2020, China imposed tariffs on significant Australian exports, including barley, beef, and wine, as part of an assertive display of its economic power during a contentious dispute with Australia’s former conservative government.
In response, Australia initiated a case with the WTO. Recently, negotiations between the countries’ trade ministers led to the temporary suspension of the WTO case. According to AFP, Canberra is currently urging Beijing to remove trade barriers affecting the export of Australian wine, which remains a subject of a separate WTO complaint.
“We will continue to press for all trade impediments affecting Australian exports to be removed, which is in the interests of both Australia and China,” Wong said.
Since May 2020, China’s duties on Australian barley have effectively blocked exports to that market, worth about USD 916 million in 2018-19. “The removal of these duties means that Australia will now discontinue legal proceedings at the WTO,” the statement added.
This resolution comes after the Australian government in April this year had said a pathway agreed with China to temporarily suspend our WTO dispute while China conducted an expedited review of the measures.
