Farmers urge McGowan to prioritise agricultural trade in China talks as tensions show first signs of thawing

The State’s powerhouse agriculture industry has urged Premier Mark McGowan to prioritise agricultural trade when he visits China this year, with grains leaders saying lifting sanctions on Australian barley is “critical”.
Mr McGowan is planning his first visit to China in four years later this year and feels confident he is in prime position to capitalise on an emerging thaw in relations between Canberra and Beijing after a tense few years.
Federal Trade Minister Don Farrell and his Chinese counterpart Wang Wentao met virtually for the first time in three years on Monday, with the Federal Government hopeful talks could lead to the removal of sanctions on exports.
Mr Farrell labelled the talks a key step towards restoring bilateral economic and trade ties. He plans to travel to China in the coming months after the virtual meeting failed to result in a breakthrough on trade sanctions.
Mr McGowan said it was “very important” the WA Government “continued to have a good relationship” with China.
“Obviously, WA has continued to have a good relationship with China over the course of the last three or four years when the Commonwealth Government didn’t,” he said.
Mr McGowan made the comments during his six-day visit to Japan late last month, where he spruiked WA’s green hydrogen and battery mineral capabilities but did not directly meet agricultural stakeholders.
He then spent four days in South Korea to meet steel, gas and motoring companies.
South Korea is WA’s fifth biggest importer of wheat and a major buyer of lupins from CBH Group, but Mr McGowan did not directly meet with any agricultural stakeholders there.
A State Government spokesman said the mission enabled Mr McGowan to promote WA’s high value products including wine, honey, seafood, meat, avocadoes, wheat and other grains.
Mr McGowan was an outspoken critic of the Morrison government’s handling of the China relationship after the outbreak of COVID-19, when Beijing cut off contact with Canberra and imposed trade bans on $20 billion worth of Australian goods.
This included an 80.5 per cent tariff on barley, which effectively stopped the trade, as well as sanctions on beef, lobster and wine.
WAFarmers grains section president Mark Fowler said though Australia had secured other markets for its barley in recent years, it was “critical” the China market became an option again.

CBH Group — which was hit specifically with sanctions stopping it from sending barley to China in August 2020 — declined to comment but is understood to be in talks with the Federal Government about the issue.
China is Australia’s biggest trading partner, accounting for one-third of the nation’s trade and exports nearing $200b in 2020/21.
The National Farmers Federation is hopeful the Government can reach an agreement with China for improved access, with farmers exporting more than 70 per cent of what they grow.
Mr McGowan’s plans to visit China come after Federal Assistant Trade Minister Tim Ayes and China’s Vice Minister of Commerce Wang Shouwen met on the sidelines of the World Economic Forum’s annual meeting in January, paving the way for higher-level talks.
China’s top diplomat in Perth Long Dingbin also visited the Geraldton Fishermen’s Co-operative in January, marking a positive sign the lucrative Asian market could soon be welcomed back.
Federal Agriculture Minister Murray Watt welcomed this week’s meeting between Mr Farrell and Mr Wentao, but said there was “nothing confirmed” about changes in regards to agricultural products.
“Obviously, it’s an encouraging thing that our trade ministers can be having those discussions,” he said.
Complaints have been lodged through the World Trade Organisation against Chinese tariffs on Australian wine and barley, while exporters are also keen to see meat and lobster blockages lifted.

Asked how Australia is keeping the pressure on China to drop the sanctions, Senator Watt said: “By communicating that directly to them whenever we have that opportunity.”
Mr Watt also recently travelled to Europe to progress trade talks with the European Union, with Canberra locked in a high-stakes food fight with Europe over locally-produced prosecco and fetta cheese.
Australia is also pushing to seal a free trade agreement with Britain, after the Australian Parliament ticked off its side of the deal late last year.
The Premier said he planned to visit China, Japan and South Korea on yearly basis.
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