Background
In April 2020, China imposed tariffs exceeding 200 percent on Australian barley exports, alleging dumping and subsidies.
Recent Developments
China and Australia faced strained relations during the COVID-19 pandemic, including tariffs on Australian wine by Beijing in 2020.
After three years, China announced the lifting of imposed tariffs on Australia.
Reasons for Tariffs
- Australia accused of dumping barley into the Chinese market
- Allegations of subsidizing its farmers
Political Motivation
Australia viewed the tariffs as retaliation for calling for an independent COVID-19 investigation.
China criticized Australia, accusing it of being influenced by the United States.
Removal of Tariffs
The Ministry of Commerce in China confirmed that tariffs removal will be effective from Mar 29.
China expressed willingness to resolve concerns through dialogue for bilateral economic relations.
Trade Impact
Prior to tariffs, trade between Australia and China was valued at 1.1 billion Australian dollars annually.
China was the largest export destination for Australian wine.
Australia-China Submarine Dispute
The dispute stems from Canberra’s decision to cancel a submarine deal with France’s Naval Group worth $90 billion.
