News trade war
Trade war with China hurts Australian farmer
A trade war between China and Australia is lurking for several agricultural products such as barley and beef. The reason for the trade dispute is an anti-dumping claim by China on barley from Australia. An 80% import duty hangs over the Aussies.
Already at the end of 2018 started China investigates alleged barley dumping by Australia. According to analysts, mainly in response to the many Australian claims against the Chinese (steel) industry. Of the 30 claims the country had pending, nearly 2018 were against China by the end of 20.
80,5% import duty on barley
Less than a week ago, the news on the grain market reared its head again. The reason is a ruling from Australia, where the government is demanding an investigation into the source of the spread. In response, China calls a trade boycott, which brings up the barley research again. An import duty of 73,6% is proposed. Also, the Chinese do not agree that farmers in the country receive drought aid. They call this unfair competition, for which another 6,9% levy is charged.
For example, trade relations between the two countries are at an all-time low. In addition to barley, China has already banned 4 Australian abattoirs from supplying beef to their country. The reason for this is a corona outbreak around slaughterhouses.
Pain for Australian farmer
The pain is mainly with the Australians, their economy and especially the agricultural sector. China sees plenty of opportunities in the short term to get (brewing) barley from Canada, Germany, Denmark and the US. In Europe in particular, the barley market – due to the disappearance of the catering industry – is deeply in the doldrums. A trade boost from China is good news for Europeans. Chinese brewers think differently about this. For years they could rely on cheap barley from Australia and fear price increases. There are no immediate concerns due to huge stocks.
China is also shifting its trading position in the field of meat imports. In April, 8 Spanish pig slaughterers were granted access to their market. In the US, there were even 5 pork and beef suppliers and 9 poultry suppliers. Also meat products from Russia are purchased. In comparison, 70 Australian slaughterhouses now supply China.
North America wins
With their recent trade deal in their pocket, the US is seen as the winner of the China-Australia trade dispute in the field of meat. For barley, this is mainly Canada, which was already allowed to supply half a million tons in the second half of 2019.
Niels van der Boom
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