The Chinese government has imposed tariffs of over 80% on barley imported from Australia.
China initially imposed a dumping tariff of 73.6% on Australia claiming that Australia is dumping barley in their country, which essentially means selling at a lower price than local vendors in a bid to give foreigners unfair advantage, thus Australia sells barley to them for cheaper than its production cost.
In addition, another 6.9 per cent subsidy tariff was added because Australia farmers receive a subsidy from the Australian government to grow their crops.
Simon Birmingham, Australia’s trade minister revealed that Australia may appeal the anti-dumping tariff of 73.6% and also the 6.9% and the subsidy tariff.
The newly imposed tariff is to come into effect today Tuesday 19th of May 2020 after the China minister of commerce announced the 80% tariff yesterday Monday 18th of May.
Simon Birmingham said in a statement that the Australian government rejects the basis of the imposed tariffs and were deeply disappointed with China’s actions.
The Australian trade minister disclosed that the country is actively seeking new markets for its barley and revealed that Indonesia was a potential customer.
After China’s decision was announced on Monday, speculation arose that the decision is paid back for Australia after they backed the notion for an International Coronavirus Inquiry. Over 110 countries back the nation including Australia.
