❓ Hon Peter Collier, on behalf of Hon Jim Chown, asks the Minister for Agriculture and Food about the Chinese ban on WA grain imports, specifically barley from CBH, and the government's response. The Minister acknowledges the issue, explains the situation, and highlights the broader geopolitical context and the need for market diversification.
AnsweredQoN 846Legislative Council
QuestionView source ↗
GRAIN
EXPORTS — CHINA
846. Hon PETER COLLIER to
the Minister for Agriculture and Food:
I ask this question on behalf of Hon
Jim Chown, who is away on urgent parliamentary business.
(1) Will the
minister please inform the house of the details regarding the Chinese ban on
grain imports from Western Australia?
(2) What tonnage
and variety of grains are likely to be affected?
(3) Is the minister and the government in discussion
with Chinese representatives to resolve the trade impasse?
(4) How long does
the minister believe these exports to China will be restricted?
EXPORTS — CHINA
846. Hon PETER COLLIER to
the Minister for Agriculture and Food:
I ask this question on behalf of Hon
Jim Chown, who is away on urgent parliamentary business.
(1) Will the
minister please inform the house of the details regarding the Chinese ban on
grain imports from Western Australia?
(2) What tonnage
and variety of grains are likely to be affected?
(3) Is the minister and the government in discussion
with Chinese representatives to resolve the trade impasse?
(4) How long does
the minister believe these exports to China will be restricted?
AnswerView source ↗
I thank the member for the question.
It is a very important question.
(1)–(4) On
31 August 2020, the Australian government was notified by the General
Administration of Customs of the People's
Republic of China that CBH marketing and trading, CBH Grain Pty Ltd, had been
suspended from exporting barley to China, effective from 1 September
2020. The basis of this suspension was the allegation
that CBH barley cargoes did not meet phytosanitary requirements in respect to
weed seed levels . CBH has not found
any evidence to support these claims. In fact, I understand that some of the
weed seeds that Chinese customs
alleged to have found in Western Australian barley imports have never been
recorded in Western Australia. The suspension imposed by China applies
only to barley exports from CBH Grain, the marketing and trading arm of CBH
Group. However, because of tariffs that had been imposed by China since May 2020, the barley trade had already
effectively ceased, so very little new trade of barley will be affected
by this suspension.
The Department of Primary Industries
and Regional Development is working very closely with the Australian Department
of Agriculture, Water and the Environment, which is leading the investigation into the noncompliance notices. Together, they are
working with CBH Grain to gather evidence to respond to the
noncompliance notices to the GACC. Unfortunately, I cannot say with any
confidence when these issues are likely to be resolved.
Members will be aware that because of
the deteriorating relationship, in part, between China and Australia at a national
level, not only our barley but also our wine and beef are in the spotlight. I have
had some informal advice that perhaps even hay has been affected. Although no
formal barriers have been placed around hay,
pressure has perhaps been applied to importers. We have a serious problem. I am
not sure when this will be resolved. We have to understand that because
of the trade imbalance between China and the United States and the tariff war
that has been waged, there has been an agreement by China to divert $US70 billion
per annum of agricultural imports that come from other parts of the world to
the USA. Of course, there is going to be a long-term impact on our growers, and
I think that is unavoidable. What we obviously need to do is to make sure that
we work extremely hard to diversify our markets.
It is a very important question.
(1)–(4) On
31 August 2020, the Australian government was notified by the General
Administration of Customs of the People's
Republic of China that CBH marketing and trading, CBH Grain Pty Ltd, had been
suspended from exporting barley to China, effective from 1 September
2020. The basis of this suspension was the allegation
that CBH barley cargoes did not meet phytosanitary requirements in respect to
weed seed levels . CBH has not found
any evidence to support these claims. In fact, I understand that some of the
weed seeds that Chinese customs
alleged to have found in Western Australian barley imports have never been
recorded in Western Australia. The suspension imposed by China applies
only to barley exports from CBH Grain, the marketing and trading arm of CBH
Group. However, because of tariffs that had been imposed by China since May 2020, the barley trade had already
effectively ceased, so very little new trade of barley will be affected
by this suspension.
The Department of Primary Industries
and Regional Development is working very closely with the Australian Department
of Agriculture, Water and the Environment, which is leading the investigation into the noncompliance notices. Together, they are
working with CBH Grain to gather evidence to respond to the
noncompliance notices to the GACC. Unfortunately, I cannot say with any
confidence when these issues are likely to be resolved.
Members will be aware that because of
the deteriorating relationship, in part, between China and Australia at a national
level, not only our barley but also our wine and beef are in the spotlight. I have
had some informal advice that perhaps even hay has been affected. Although no
formal barriers have been placed around hay,
pressure has perhaps been applied to importers. We have a serious problem. I am
not sure when this will be resolved. We have to understand that because
of the trade imbalance between China and the United States and the tariff war
that has been waged, there has been an agreement by China to divert $US70 billion
per annum of agricultural imports that come from other parts of the world to
the USA. Of course, there is going to be a long-term impact on our growers, and
I think that is unavoidable. What we obviously need to do is to make sure that
we work extremely hard to diversify our markets.
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