CHINA announced Monday anti-dumping and anti-subsidy duties totalling 80.5 percent on Australian barley imports from yesterday, which is expected to all but halt a billion-dollar trade between the two countries.

China’s Ministry of Commerce said it had confirmed dumping by Australia and significant damage on its domestic industry as a result, following an inquiry which began in 2018. The tariffs on barley will remain in place for five years.

The Chinese ministry said duties of 73.6 percent would be levied on all companies, including four named exporters, The Iluka Trust, Kalgan Nominees Pty. Ltd., JW&JI Mcdonald & Sons and Haycroft Enterprises, as well as an anti-subsidy duty of 6.9 percent.

Australia is the biggest barley supplier to China, exporting about A$1.5 billion to A$2 billion (US$980 million to US$1.3 billion) worth a year, which is more than half its exports.

Barley is used both for brewing and animal feed.

“There aren’t many alternative markets. It could be sold to Saudi Arabia, but it will be heavily discounted to what Australian farmers could have received by selling to China,” an Australian government source said.

By contrast, China, the world’s top barley importer, will simply shift purchasing to other key producers, including France, Canada, Argentina and some smaller European exporters.

“It’s very replaceable,” said Andries De Groen, managing director at Germany headquartered barley trader Evergrain.

Ignited by a comprehensive free trade deal, two-way trade between Australia and China has grown annually to be worth A$180 billion. China’s growth has propelled demand for Australian agricultural goods, services such as tourism and education, and natural resources like iron ore. (SD-Agencies)