Australia & China: Officials to meet to discuss how to normalize barley trade next week - sources

Australian and Chinese officials will meet next week to discuss how to normalise trade, a source told Reuters, as diplomatic ties thaw and as a World Trade Organisation (WTO) ruling on Australia's complaint about Chinese barley tariffs is due.

A final WTO report on the barley dispute is due to be delivered to China and Australia on March 31, according to the WTO website, which also shows an interim report would have been delivered to the two nations weeks earlier.

Under the WTO dispute process, the findings on whether trade rules have been broken and any remedy will be distributed to all WTO members within three weeks of the final report, and its recommendation adopted within 60 days unless there is an appeal.

The likely public release of the WTO ruling within weeks comes as dialogue between the two nations steps up and Australia presses China to lift a series of trade blockages.

Assistant Trade Minister Tim Ayres said on Friday that Australia was "confident that the applications that we've made would be successful in the normal course of events" but was also discussing the WTO case with China.

"If there's progress and it's in the national interest, well, we are absolutely prepared to deal with these issues by agreement. If there can't be agreement, then that's what the WTO appeal process is for," he told ABC radio.

Trade Minister Don Farrell held a video meeting with his Chinese counterpart Wang Wentao in February, which was followed by a video meeting of trade officials. Trade officials will meet in person next week, a source told Reuters.

"Minister Wang and I agreed to enhanced dialogue at all levels, including between government officials, to pave the way for the resumption of trade," Trade Minister Don Farrell said in a statement to Reuters on Friday, in response to questions.

"Our government officials are meeting to continue to lay the groundwork for the resumption of trade."

China's embassy in Canberra did not respond to a request for comment.

Australia lodged the complaint in the World Trade Organisation in December 2020, after China imposed anti-dumping and anti-subsidy duties totalling 80.5% on its barley exports in May.

Australian wine, beef, coal, seafood and timber exports to China were also hit by what Australia's government calls "trade impediments", amid a diplomatic dispute over Australia's call for an international inquiry into the origins of COVID-19, which angered Beijing.

China was the top destination for Australia's malting barley - taking half of annual barley exports worth A$1.5 billion to A$2 billion ($1.0 billion to $1.3 billion)- before the tariffs were imposed, although exporters were able to diversify and find new markets in Saudi Arabia, Thailand and Vietnam, agriculture department data showed.

Diplomatic tensions have eased since a Labor government was elected in May 2022.

Ayres met his Chinese counterpart Wang Shouwen in China on Wednesday at the Boao Forum for Asia and later told Australian media that Australian coal had started to arrive in China's ports, but progress was still needed on seafood, wine and barley.

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