AUSTRALIA temporarily suspended its complaint before the World Trade Organization (WTO) over Chinese government tariffs on Australian barley as both sides agreed to resolve their differences through negotiations instead.
China imposed punitive tariffs of more than 80% on Australian barley at the height of diplomatic tensions in 2020, bringing economic pain to the industry.
The duties wiped out imports of grain to China -the world’s biggest beer market- and pushed Australia to lodge a formal complaint to the WTO in that same year.
Relations between the 2 major trading partners worsened after Australia called for an inquiry into the origins of COVID-19 which resulted in a multibillion-dollar trade war.
Apart from barley, the Chinese government also imposed hefty tariffs on other Australian export products such as wine, coal, timber, and lobster.
Earlier this week, Canberra announced the suspension of its WTO action against Beijing just a few days before the global trade watchdog was due to release its finding regarding the barley dispute.
Australia suspended its WTO complaint after China agreed to undertake an expedited review of the tariffs slapped against Australian barley over the next 3-4 months.
If the tariffs are not lifted within the next three months, Foreign Affairs Minister Penny Wong said Australia reserves the right to resume its WTO action against China.
Senator Wong said the move could also lead to the removal of tariffs on Australian wine and resolve the dispute faster than if they simply proceeded through the WTO.
