Chinese trade restrictions, tariffs on Australian goods end in sight after crucial meeting

The most crucial trade meeting to take place in three years between Australia and China in a bid to forge a pathway to ending remaining tariffs and restrictions on Australian goods has been labelled “very positive” by Trade Minister Don Farrell.

Senator Farrell met with his Chinese counterpart Wang Wentao on Friday evening and told reporters at a late-night press conference the high-level talks had been a success, with Mr Wang agreeing to visit him in South Australia to build on the “positive momentum” of their conversation.

“They were very positive discussions,” he said.

Senator Farrell said the pair had agreed to “step up dialogue” to resolve the trade dispute with the country’s biggest trading partner.

He said Mr Wang reassured him that a recent agreement “remains on track” to end Chinese sanctions that killed off Australia’s $1.2 billion-a-year worth of barley exports to the country.

“I also reiterated that we expect a similar process to be followed with the WTO dispute in respect to Australian wine,” Senator Farrell said.

The trade minister also said Mr Wang raised China’s eagerness to be admitted under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, as well as China’s frustration at delays for some electric vehicles being imported into Australia.

Australian agricultural officials are set to be dispatched as a result to try and resolve the biosecurity issues related to the cars.

Senator Farrell had a positive virtual meeting with Mr Wang in February, which prompted the movement on trade with the resumption of coal, cotton and copper.

Beijing also agreed last month to undertake an expedited review of its tariffs on Australian barley over the next three months, and in return, the Federal Government will temporarily suspend its sanctions complaint lodged with the World Trade Organisation.

“A whole lot of movement has started already. We’ve seen coal come back into China. We’ve seen copper concentrates come back into China. We’ve seen cotton come back into China,” Senator Farrell said.

“We’ve got a pathway for resolving the World Trade Organisation barley dispute and we’ve indicated to the Chinese that we see that as a process for delivering on the issue of wine.”

The Chinese Government said prior to the meeting it “stands ready to work with Australia” and Trade Minister Don Farrell was confident he would return from Beijing with solutions.

“China stands ready to work together with Australia to deliver on the important common understandings reached by our leaders, build mutual trust, deepen cooperation, properly handle differences and work for the sustained, sound and steady development of bilateral relations,” China’s Foreign Ministry spokesman Wang Wenbin said.

“In this process, the two sides may be able to find a balanced way to resolve each other’s concerns on economic and trade issues through constructive consultation to the benefit of both peoples.”

Senator Farrell said a stable relationship, including through trade, between Canberra and Beijing would also boost the prospect of regional peace.

“Nothing’s going to do more to achieve peace in our region than strong trading relationships between Australia and China,” he said.

There is growing expectation Mr Albanese will be invited to Beijing later this year — potentially to mark the 50th anniversary of former prime minister Gough Whitlam’s landmark trip in 1973.