China Eases Barley Tariffs: WA Grain Growers Relieved, but CBH Remains Blocked

In a significant move, China has decided to abolish the 80 per cent tariff imposed on Australian barley, a step that West Australian grain grower, Barry West, believes will benefit both countries. This comes as a respite after the heightened trade tensions between China and Australia peaked in 2020, with China targeting barley exporters.

The tariff had taken a toll on the barley market, leading to plummeted prices almost instantly. Reflecting on the tariff’s impact, West recalled the challenging period, stating that barley prices fell by $40 per tonne overnight. His farm had 50 per cent of its crop as barley when the tariff was imposed.

Mark Taylor, another farmer from the south near Kojonup, also felt the repercussions. He shared that before the tariff, barley made up about 40 per cent of their business, a figure that dropped below 30 per cent after the restrictions. However, the silver lining for Taylor and other growers was that they found alternative domestic markets they hadn’t considered previously.

In 2018, before the trade dispute, barley exports to China were valued at a whopping $1 billion.

Despite the positive development on tariffs, concerns linger for WA grain growers. CBH, WA’s largest grain exporter to China, remains barred from exporting. This restriction was imposed after China alleged the discovery of pests in a barley shipment from CBH in September 2020. This ban continues to affect trade, with Great Southern grain marketer, Richard Avery, confirming that CBH grain has not been allowed into China since the incident.

Trade Minister Don Farrell sees China’s recent decision as a significant stride towards free trade, albeit just the initial step. He commented that the tariff had caused billions in trade losses between the two nations.