China is increasing pressure on Australia to impose a penalty of 80.5% on imports of Australian barley from May 19. Observers expect that a prepared trade agreement between the two countries will now be postponed.
The rift between the two countries, as a result of which China causes great damage to the Australian economy, began with a decision in 2018.
The punitive tariffs on barley imports will now remain in force for five years. This is the last of many measures Beijing has taken against Canberra. Four companies are exempt from punitive tariffs.
Australia is China's largest supplier of barley. Barley is valued at $ 0.8 billion to $ 1.3 billion annually. More than half of the total harvest. The barley is used to brew beer and as animal feed.
There are only a few sales alternatives for Australia. You could try to deliver to Saudi Arabia, but you would not get the prices there that Chinese customers would. In contrast, China has an easier time finding alternatives. The countries of France, Canada, Argentina and some smaller EU countries are possible.The situation is absolutely disappointing for Australia. One wants to appeal the decision to the WTO.
In 2018, the Australian government decided against using Huawei software for its 5G broadband expansion. Tensions worsened as Canberra criticized China's attempt to exert more influence in the Pacific region. Australia is caught between the chairs of the West and the economic dependence on Asian countries.
Australia has now also requested an investigation into where the corona virus comes from. At the end of April, Beijing's ambassador to Australia asked its compatriots to boycott Australian products such as round meat and wine. Tourism should also be restricted, as should scientific cooperation. A few days later, Beijing blocked meat imports from Australia's largest meat processor.
Source
Hansa Terminhandel GmbH
