Trade Minister Don Farrell’s China mission to remove tariffs on exports

Don Farrell will be the first Australian Trade Minister to touch down in China in nearly four years as he works on removing tariffs on the nation’s exports.

He will arrive in Beijing on Thursday before meeting China’s Commerce Minister Wang Wentao on the ongoing trade dispute.

It comes after Australia made a major breakthrough on sanctions with China last month, with both countries agreeing on a way forward on barley exports.

Beijing accepted a request to undertake an expedited review of its tariffs on Australian barley over the next three to four months.

In return, the Federal Government will temporarily suspend its complaint lodged with the World Trade Organisation, a complaint over China imposing the tariffs in 2020.

“During my visit, I will be advocating strongly for the full resumption of unimpeded Australian exports to China — for all sectors — to the benefit of both countries and in the interests of Australian exporters and producers,” Senator Farrell said.

“I will also raise other issues of importance to Australians.”

China put tariffs and restrictions on $20 billion worth of Australian exports a year after the Morrison government called for an international inquiry into the origins of COVID-19.

The Trade Minister’s visit follows Prime Minister Anthony Albanese meeting President Xi Jinping on the sidelines of the G20 summit in Bali in November, and Foreign Minister Penny Wong’s trip to Beijing in December.

Premier Mark McGowan embarked on a five-day mission to “reconnect” WA with China last month and strengthen ties between the two trading partners.

China is WA’s biggest trading partner with one in four jobs in the State relying on Beijing to export goods.

In 2021, WA accounted for 57 per cent of Australia’s trade in goods with China, particularly through WA’s shipments of iron ore — totalling $151.6 billion.

Senator Farrell said during his February meeting, he and Mr Wang “agreed to enhance dialogue at all levels as a pathway towards the full resumption of trade”.

“Since then, the Australian Government is pleased there have been several positive trade developments, including the resumption of coal, cotton, and copper trade and China’s agreement to undertake an expedited review of duties on Australian barley,” he said.

“China is Australia’s largest trading partner, with two-way trade in goods worth $287 billion in 2022. While in Beijing, I look forward to meeting with other Chinese political leaders and business representatives, including Australian businesses and workers operating in China.”

Senator Farrell will also co-chair the 16th Joint Ministerial Economic Commission with Mr Wang during his visit, which last convened in Beijing in 2017, and is another important step in the stabilisation of Australia’s relationship with China.

Liberal Senator Simon Birmingham was the last Trade Minister to visit China in 2019 when he attended high-level talks with his Chinese counterpart at the time and went to a trade exhibition in Shanghai to promote Australian exporters to the Beijing market.