Australia expresses disappointment as China imposes new 55% tariffs on beef imports, potentially cutting AU$1 billion in trade and suspending part of a free trade pact.
SYDNEY: The Australian government has expressed disappointment over China’s decision to impose new tariffs on beef imports.
Trade Minister Don Farrell (pic) said Australia had made it clear its beef poses no risk to China’s domestic sector.
“We are disappointed by this decision,” Farrell said in a statement.
“We expect our status as a valued free trade agreement partner to be respected.”
China announced additional 55% tariffs on beef imports from countries including Australia, Brazil and the United States.
The tariffs apply to imports exceeding a certain quota for the next three years.
Beijing also said it would suspend part of a free trade agreement with Australia covering beef.
China is Australia’s second-most lucrative beef export market, behind the United States.
Under the new rules, Australia faces an annual quota of around 200,000 tonnes.
The Australian Meat Industry Council warned the move could reduce exports to China by about one-third.
Council executive officer Tim Ryan said this represents trade worth over AU$1 billion.
Ryan warned the tariffs would have a “severe impact” on trade flows to China.
He said they “restrict the ability for Chinese consumers to access safe and reliable Australian beef”.
Analysts link the tariffs to falling beef prices in China due to oversupply and slowing demand.
Chinese beef imports from countries like Brazil, Argentina and Australia have surged in recent years.
Beijing said investigators found beef imports had damaged China’s domestic industry.
The bilateral relationship had improved recently with Beijing lifting bans on other Australian exports.
Tensions began in 2018 when Canberra excluded Huawei from its 5G network on security grounds.
Australia further angered China in 2020 by calling for an international Covid-19 origins investigation.
Australia has since worked to insulate its vital trade relationship with China from geopolitical issues.
China remains Australia’s largest trading partner overall.
