Government responds to China authorities, refuting claims Australia dumped barley on their market or that farmers are subsidised, as trade war heats up

The Australian Government has lodged its comprehensive response to Chinese authorities, refuting that Australian farmers are subsidised or that Australian grain was dumped on the Chinese market. Trade Minister Simon Birmingham said the response to Chinese authorities was backed up by more than 10,000 pages of evidence, including economic analysis and pricing analysis, that demonstrates Australian barley farmers operate free of government subsidies. In an interview with ABC Insiders — Senator Birmingham, pictured right, said the comprehensive response comes after initial responses, in conjunction with industry, that have already been provided as part of an 18-month investigation by the People’s Republic of China’s Ministry of Commerce into the dumping allegations. “The idea that somehow the payments that the Australian Government makes to upgrade irrigation infrastructure in the Murray-Darling Basin in any way impacts on barley prices in China, just doesn’t stand the test of any analysis,” Senator Birmingham said. “Our barley that goes to China is largely a product of dry land irrigation, predominantly coming out of WA and the west coast of South Australia. “It’s not coming out of the irrigated areas of the Murray-Darling Basin.” China’s Ministry of Commerce has until Tuesday to provide its final determination on the investigation, after warning last week it could slap tariffs of up to 80 per cent on Australian barley imports. WA farmers would be hit hardest by big tariffs, growing more than 75 per cent of Australia’s barley exports to China, in and industry worth about $1 billion annually to the State. The potential 80 per cent tariffs were announced last week at a time of rising diplomatic tensions between Australia and Beijing over the Australian Government’s calls for a global enquiry into the origins of the coronavirus. Last week Chinese authorities also suspended four major beef export abattoirs, based in NSW and Queensland, over issues relating to labelling and health certificates. WA Agriculture Minister Alannah MacTiernan told State Parliament last week that since the dumping claims emerged 18 months ago the McGowan Government had been raising the issue with Chinese officials and with the Australian Government on multiple occasions, including on a trade visit to China in March last year. “We had some optimism some weeks ago that there would be a positive outcome, but obviously by Friday last week that had changed,” she said. Ms MacTiernan said the WA Government strongly believed there were no grounds for the claims that Australian barley was being dumped or subsidised into the Chinese market. The announcement by Chinese officials came at a difficult time for WA farmers who are midway through planting their crops for this season. Many who had not fishing sowing barley quickly decided to plant wheat instead. Esperance farmer Chris Reichstein said he had finished planting his 900ha of barley when he heard the announcement about potential tariffs. But he said even if it had not been too late, he doubts he would have changed plans as barley worked well in the rotation of is 4500ha cropping program. He said a lot could change in the next six to 12 months, when the crop being sown now would be sold. “We are obviously looking at alternative markets and although there was initially a knee-jerk reaction with prices falling sharply, they have since started to edge their way up again,” he said. The barley price plunged 20 per cent immediately after the announcement — worth about $40-50 per tonne. Mr Reichstein said he was fully confident there has been no wrongdoing on Australia’s part, and expects China’s proposed tariffs are in response to the Australian Government’s calling for the inquiry into COVID-19. Ms MacTiernan said although work had been under way through the Australian Export Grains Innovation Centre (half funded by the State Government) to establish alternative malting barley markets, these high value markets could not be switched on overnight.

Government responds to China authorities, refuting claims Australia dumped barley on their market or that farmers are subsidised, as trade war heats up

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