Glenn Sterle (WA, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Trade and Tourism, Senator Farrell. Late last week the Australian government announced that China would remove the 80.5 per cent antidumping and countervailing duties on Australian barley. It has been reported that the Chinese duties on Australian barley effectively blocked exports to that market, which was worth nearly $1 billion prior to the duties being imposed. This outcome has been welcomed by Australian grain producers and exporters and has been welcomed by me and by every other Western Australian, as China has historically been a very important export market for malting barley over many decades. Minister, can you outline what action the Albanese government has taken to pave the way for the re-entry of Australian barley into the Chinese market?

Don Farrell (SA, Australian Labor Party, Minister for Trade and Tourism) Share this | Link to this | Hansard source

I thank Senator Sterle for his question. He is a great friend of farmers, particularly Western Australian farmers. I was very pleased to announce last Friday that as of 5 August Australian traders no longer face an 80.5 per cent import duty when exporting barley to China. This follows an expedited review by China's Ministry of Commerce of its trade measures imposed in May 2020 on Australian barley imports. China initiated a fast-track review following an April agreement reached between Australia and China to suspend the WTO dispute on barley. The expedited review was the result of the re-establishment of dialogue between the Australian and Chinese governments, following a long period of diplomatic silence under the former coalition government.

From the start, I've said that we would prefer to sort out these matters by engaging in sensible dialogue and negotiation rather than through the courts. Consistent with the terms of the April agreement reached with China, Australia will now discontinue our World Trade Organization dispute. If we had had to continue to pursue this matter through the WTO dispute mechanism, we would not have had a resolution for at least another 12 months.

I'd like to take this opportunity to thank the Australian grains industry and government officials for all their hard work to get this result and thank Senator Wong for her wonderful efforts in this regard, particularly just before Christmas last year. This outcome demonstrates the importance of the WTO dispute mechanism in defending the interests of Australia's world-class producers and farmers. Without such a mechanism, we would never have gotten China to the negotiating table.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Sterle, first supplementary?

Glenn Sterle (WA, Australian Labor Party) Share this | Link to this | Hansard source

My gosh, this really is exciting. Minister, the removal of Chinese import duties on Australian barley is a positive development, but trade impediments imposed by China are affecting the export of other great Australian products, including wine and crayfish. What is the Albanese government doing to remove these trade impediments?

Don Farrell (SA, Australian Labor Party, Minister for Trade and Tourism) Share this | Link to this | Hansard source

I can answer that question, Senator Sterle, because while there's been positive progress on trade impediments, there's still some way to go until we see normal trade with China resume across the board. With the removal of the barley duties, the value of trade impacted has been reduced to just over $2 billion. The Albanese government is working hard to remove the remaining trade impediments. This year I've met with my Chinese counterpart, Commerce Minister Wang Wentao, on three occasions. In my meetings with Minister Wang, I've consistently advocated strongly for the full resumption of unimpeded Australian exports to China. I intend to continue discussions with Minister Wang to resolve those outstanding issues. So far, dialogue rather than bluster has proven effective.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Sterle, second supplementary?

Glenn Sterle (WA, Australian Labor Party) Share this | Link to this | Hansard source

Minister, there have been several positive trade developments this year with China, including the resumption of Australian exports of coal, cotton, copper ores and concentrates, and the lifting of quarantine restrictions on timber logs. While these developments are welcome, can the government detail what work has been undertaken to support market diversification for all exporters?

Don Farrell (SA, Australian Labor Party, Minister for Trade and Tourism) Share this | Link to this | Hansard source

Yes, I can talk about those things, because a priority of the Albanese government has been to work to stabilise our relationship with China, by far our largest trading partner.

Notwithstanding steps taken towards a stable relationship with China, prudent businesses will continue to diversify their markets. Recent experience demonstrates that over-reliance on any single trading partner comes with its risks. The Albanese government has been encouraging Australian businesses to continue with their diversification plans and take advantage of new and emerging markets. A key element of the government's trade diversification agenda is entering into new and comprehensive free trade agreements. The United Kingdom and the Indian markets now offer new opportunities for Australian producers and traders. And, we are currently in tough negotiations to conclude the best trade deal possible with the European Union. (Time expired)