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AAP
AAP
Politics
Andrew Brown and Dominic Giannini

Farmers optimistic of China barley ban ending

Hopes are growing that China may ease tariffs on Australian barley and possibly other products. (Richard Wainwright/AAP PHOTOS) (AAP)

Australian farmers are hopeful a breakthrough in a trade dispute with China over barley could pave the way for restrictions on other goods to be eased.

The federal government has paused its World Trade Organisation dispute against Beijing for imposing hefty tariffs on barley.

Australian exports of the grain have effectively been blocked from entering China due to a more than 80 per cent tariff since 2020.

Beijing will conduct a review of the tariffs over the next three to four months after which the WTO case will resume if no agreement is reached.

China's executive vice minister of foreign affairs, Ma Zhaoxu, will hold talks in Canberra with senior trade officials during a visit to Australia on Wednesday.

National Farmers' Federation chief executive Tony Mahar said the trade breakthrough was reassuring.

He said other items subject to hefty tariffs could possibly re-enter the Chinese market in the future.

"The constructive approach from both countries progressing with this issue is in the longer-term interests of all parties and Australian farmers," Mr Mahar said.

"We look forward to a positive outcome through this review process and hope to see quick progress on removing trade barriers for rock lobster and wine."

The four Australian export products at the centre of the dispute with Beijing are barley, wine, meat and crayfish.

Foreign Minister Penny Wong said the government was working as quickly as possible to remove the trade impediments.

"This is all about working to try and resolve this more quickly because of course Australian barley growers and communities that depend on barley would welcome a return of access to the Chinese market," she told Nine's Today program on Wednesday.

Senator Wong said the next trade issue the government wanted to address was wine exports.

She added the government was working to improve the relationship with Beijing to ensure a repeat of the trade disputes did not happen again in the future.

But Senator Wong said Australian exporters would need to rely less on the Chinese market.

"We know we're not going to be able to continue to separate our economic and strategic relationship," she said.

"Australia producers, whether of barley or wine, are going to have to look to diversify markets. That's one of the things that government is working on with industry."

A spokesman for China's Foreign Ministry said the country was looking to collaborate to restore the trade relationship.

"China is willing to work with Australia to return relations onto the right track," he said.

China remains Australia's largest trading partner, with the relationship worth $300 billion last year.

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