Sydney, 11 April 2023 (dpa/MIA) - The Australian government has reached a deal with China that could lead to the lifting of tariffs on barley that were introduced in 2020.

The Australian foreign affairs and trade ministries said jointly on Tuesday the deal creates a "pathway towards resolving the dispute."

Australia said China agreed to "to undertake an expedited review of the duties" over the next three to four months. During this time, Australia will suspend its proceedings against Beijing before the World Trade Organization (WTO).

"If the duties are not lifted at the end of the review period, Australia will resume the dispute in the WTO," the statement said.

China imposed tariffs of more than 80% on Australian barley in 2020, a move that resulted in the exports effectively being block to market.

Beijing accused barley producers of receiving subsidies and of dumping the grain on the Chinese market at a cheap price. Canberra has denied the allegations.

When China imposed the tariff in 2020, relations between the two countries had become increasingly strained. Beijing was angered by Canberra banning Chinese telecommunications giant Huawei from setting up a 5G network in Australia.

China placed a string of trade tariffs and customs delays on several Australian exports - including wine, beef and coal.

Photo: MIA archive