House debates

Monday, 7 August 2023

Questions without Notice

Trade: China

2:21 pm

Photo of Brian MitchellBrian Mitchell (Lyons, Australian Labor Party) Share this | | Hansard source

My question is to the Minister representing the Minister for Trade and Tourism. What action has the Albanese Labor government taken to pave the way for the re-entry of Australian barley into the Chinese market?

Photo of Madeleine KingMadeleine King (Brand, Australian Labor Party, Minister for Northern Australia) Share this | | Hansard source

I want to thank the member for Lyons for his question. We too came into the parliament at the same time, in 2016. He's a great Tasmanian representing the great people of Lyons. I also want to acknowledge how grateful I am to represent Senator Farrell here for this question. He is a great South Australian, who, by his deeds, is proving to be an exceptional trade minister in the Albanese Labor government.

As many in this chamber know and as has been referenced before by the Prime Minister and the minister for infrastructure, in May 2020 Australian barley producers copped an 80.5 per cent tariff when exporting barley to China. That has led to an almost $1 billion a year loss to those grain growers around Australia because the duties effectively blocked the export of that barley to the Chinese market. That is why the news that came out last week that the Chinese government will no longer be imposing these duties on Australian barley is so welcomed by the industry and of course by all Australians. There are presently 126 exporters registered to supply barley to China, who will again have access to the significant market after three long years. This is also great news for Chinese consumers, who will now be able to enjoy better beer brewed using great Australian barley—the best barley in the world, as the Prime Minister has commented.

Since being elected, the Albanese Labor government has been working constructively with the Chinese government to address a range of trade related matters which arose during a long period of diplomatic silence overseen by those opposite. As part of this constructive approach, in April China initiated a fast-track review of the barley industry following agreement between our two nations to suspend the WTO dispute on barley. Now, following Friday's announcement and consistent with the terms of that agreement with China, Australia will discontinue that WTO dispute. This is a great outcome, which demonstrates the approach adopted by the foreign minister and the trade minister of engaging in sensible dialogue and negotiation, which is delivering timely results for Australian industry. The reality is that, if we had pursued this dispute through the World Trade Organization, barley producers would not have had a resolution for at least another 12 months, and that is entirely unacceptable for a $1 billion a year industry.

We know growers were devastated by these tariffs. At the time, barley was one of the top 3 agricultural exports in the country. Other markets were pursued, such as Mexico, because, of course, they brew some good beer over there too, but none could match the geographical proximity of the Chinese market for barley nor the population. This decision has been celebrated by stakeholders. I want to acknowledge the support of National Farmers Federation Chief Executive, Tony Mahar, who said:

We acknowledge the hard work by the Albanese Government to stabilise our relationship with China—in particular Minister Watt, Minister Wong and Minister Farrell who have engaged constructively with their counterparts on this issue.

We have an exceptional Senate team leading for Australia. (Time expired)