Australia has reached an agreement with China to resolve trade blockages on the export of barley, with hopes the removal of tariffs on wine will follow.
Foreign Minister Penny Wong announced the two nations had reached a breakthrough in their long-running trade dispute over Chinese sanctions on Australian products worth an estimated $20 billion (NZ$21.4b) a year.
Beijing has agreed to undertake a three-month “expeditated” review of the tariffs it imposed on Australian barley when relations between the two countries plummeted in 2020.
In return for Beijing’s co-operation, Australia will temporarily suspend its World Trade Organisation dispute with China over Australian barley, Senator Wong said.
The federal government hopes if the trade impediments on barley can be lifted it will then be able to successfully advocate for the removal of similar tariffs on Australian wine.
Senator Wong confirmed the breakthrough in the trade dispute in Adelaide, where she spoke to reporters alongside Trade Minister Don Farrell.
Farrell is expected to soon travel to Beijing to continue trade negotiations after attending the first meeting between an Australian trade minister and a Chinese commerce minister in three years in February.
More to come
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