Australia to take China to WTO over barley tariff
FILE PHOTO: An Australian flag flutters in front of the Great Hall of the People during a ceremony in Beijing
Australia is set to ask the World Trade Organisation to investigate punitive Chinese tariffs on barley imports.
In a significant escalation of tensions between the two nations, Australian Trade Minister Simon Birmingham on Wednesday announced the decision, saying Beijing's 80-percent surcharge on barley imports from Australia "lack basis" and "are not underpinned by facts and evidence".
He added that similar action could be taken in other sectors.
Australia-China relations are at the lowest ebb since the 1989 Tiananmen Square crackdown, with Beijing rolling out a string of economic sanctions against Australian products. The tariffs and the response to them come against the backdrop of fierce disputes between Canberra and Beijing that have prompted fears the measures were also politically motivated.
Australia's barley exports to China had been worth around US$1 billion a year before a recent drought, and are used most notably in beer-making.
Experts say Beijing has mulled restricting Australian barley imports since 2018 amid worries that China -- which produces only around 20 per cent of the barley it needs -- is overly dependent on imports.
At least 13 Australian sectors have been subjected to tariffs or some form of disruption, including barley, beef, coal, copper, cotton, lobsters, sugar, timber, tourism, universities, wine, wheat and wool.
(with inputs)