China will scrap anti-dumping and anti-subsidy tariffs on Australian barley, effective from Aug. 5, China’s commerce ministry said in a statement, in the latest sign of improving ties between the two countries.

China imposed tariffs of more than 80% on Australian barley in May 2020, accusing its exporters of dumping on the Chinese market. The move came as bilateral ties were spiraling downward after then-Prime Minister Scott Morrison called for an international investigation into the origins of Covid-19.

But since the election of the center-left Labor government in May 2022, communications between Canberra and Beijing have resumed and relations improved markedly.

“In view of the changes in China’s barley market, it is no longer necessary to continue to impose anti-dumping duties and countervailing duties on imported barley from Australia,” China’s commerce ministry said.

In April, the Chinese government announced it would hold a three-month review into the barley tariffs, in return for which Canberra agreed to suspend its case against Beijing in the World Trade Organization.

Beijing sought a one-month extension of the barley review in July, meaning a decision was due by late next week.

--With assistance from Hallie Gu.