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Australia and China have achieved a major breakthrough on a long-running trade dispute, leading to a possible end to crippling taxes on barley exports.
The Australian government has paused its World Trade Organisation dispute against China for imposing the tariffs.
The more than 80 per cent duty has effectively blocked Australian barley from the Chinese market - worth some $900 million for exporters - since the start of the pandemic.
Beijing will conduct a review of the tariffs over the next three to four months after which the WTO case will resume if no agreement is reached.
The time frame is shorter than if the dispute continued through the international trade body.
"We believe there's no justification for the measures that China introduced in relation to barley," Foreign Minister Penny Wong said.
"We have also made clear that we believe it is in both countries' interests for these trade impediments to be removed."
The announcement has been welcomed by Grain Producers Australia, with farmers hopeful of increased exports to China in the coming months.
"Barley is an important rotation crop for Australian growers and any optimism on the future outlook is good," chairman Barry Large said.
A resolution could also pave the way for the removal of trade barriers imposed against other Australian products.
"We hope this will be a template for them moving on to the other areas of dispute, and in particular, Australian wine," Trade Minister Don Farrell said.
"We are hopeful that at the end of that review process, the impediments that currently exist will be suspended and removed and we can get back to normal trade with China."
Beijing has consistently called for Australia to drop the WTO dispute as a sign of goodwill, but Canberra has always insisted on a change to the trade impediments in response.
There has already been some movement in Beijing in relation to Australian coal exports with the end of an unofficial ban that lasted more than two years.
China remains Australia's largest trading partner, worth some $300 billion last year.
