COMMENTS / COLUMNISTS
Potential US barley imports to China a test for Australian government
Published: May 14, 2020 03:45 PM

File photo

China will allow US barley imports that meet relevant requirements, read an announcement the General Administration of Customs published on its official website on Thursday.

The move is a normal trade practice, but its timing suggests a delicate situation. If US agricultural products take over Australia's share in the Chinese market, then who is the antagonist of Australian businesses, China or the US? The mere existence of such a possibility should raise an alarm for industry insiders and policymakers from the Morrison government.

Of course, there are many uncertainties, such as whether China will really impose major tariffs on barley exports from Australia. While China-Australia relations have been deteriorating, it is still worth noting that politicizing China's normal trade practices will do no good for bilateral ties. China's decision to allow US barley imports and potential tariff impositions are based on business considerations and facts. The Morrison government should see sense and halt the further decline of its relations with China.

Moreover, it is likely Australia will face competition from US agricultural products in the future, which may put US-Australia friendship to the test. One can't help but wonder what Australian politicians would do to protect their businesses under those circumstances and whether they would take a hard line against the US.