BREAKING NEWS: Australia demands sit-down talks with China and lodges a World Trade Organisation dispute over huge barley tariff
Australia will lodge a formal dispute at the World Trade Organisation on Wednesday night over China's tariff on Aussie barley.
Beijing slapped an 80 per cent tariff on Australian barley in May, a month after Scott Morrison called for an inquiry into the origins of coronavirus which was identified in Wuhan late last year.
China claims Australian barley growers are unfairly subsidised by the government, but Canberra denies this.
Beijing slapped an 80 per cent tariff on Australian barley in June. Pictured: Barley in central west New South Wales
Trade Minister Simon Birmingham has demanded sit-down talks with Chinese officials, who have refused to answer his calls for months.
'We advised the counterpart for Australia's intention to request formal consultations with China in relation to dumping and other duties in regards to the Australian daily industry,' he said in a press briefing on Wednesday.
'We will make this formal request to the WTO tonight.'
China imposed an 80 per cent tariff on Australia barley on 18 May after an 18-month anti-dumping investigation.
Dumping is when a country exports a product unfairly cheaply to permeate a foreign market, with producers often subsidised by the government.
China announced a 80.5% levy on barley exports starting May 19. Pictured is a barley farmer in central west NSW
China has accused the Australian government of subsidising farmers through the farmhousehold allowance and the Murray-Darling basin project.
Senator Birmingham said in May the allegations were' ridiculous' because most of Australia's barley is produced far away from the basin.
He said: 'It's completely ridiculous to be listing things like the Murray-Darling Basin infrastructure upgrades as some sort of subsidy to barley exporters when the bulk of that barley comes out of Western Australia or South Australia and is firmly dry-land farming.
'The Murray-Darling Basin is nowhere near Geraldton or other parts of the barley-growing world and I think it demonstrates the absence of factual analysis in the decision that's been made by China.'
Dumping is when a country exports a product unfairly cheaply to permeate a foreign market, with producers often subsidised by the government (stock image)