Australia, China mend ties as red meat rade resumes

AUSTRALIA – Australia announced on Tuesday that China has fully lifted restrictions on Australian red meat exports, signaling progress in resolving a prolonged trade dispute that disrupted approximately US$13 billion worth of exports over four years.

The trade conflict began in 2020 when Beijing imposed trade barriers on several of Australia’s key export products, including wine, barley, coal, and seafood, amid growing tensions between the two nations. 

However, recent months have seen a gradual reversal of these measures as diplomatic efforts aimed at repairing the bilateral relationship gained traction.

The latest development allows two Australian beef-processing plants to resume exports to China, marking the removal of barriers on red meat. 

Australian Prime Minister Anthony Albanese confirmed the decision, describing it as a step toward a “full resumption of red meat exports.”

Red meat and lobster were among the last commodities still facing restrictions. 

Lobster trade is expected to fully resume by the end of the year, with an agreement in place for the sanctions to be lifted ahead of the Lunar New Year, a peak demand period for seafood delicacies such as rock lobster.

China remains Australia’s second-largest market for beef exports after the United States. 

Representatives of the Australian meat industry welcomed the decision, with Tim Ryan of the Australian Meat Industry Council calling it a positive outcome for exporters after years of efforts to navigate trade barriers.

The strained trade relationship dates back to 2018, when Australia excluded Chinese telecommunications firm Huawei from its 5G infrastructure citing security concerns. 

Relations worsened in 2020 after Australia called for an independent investigation into the origins of COVID-19, a move Beijing viewed as politically motivated.

Australia is a big meat producer. 

The country produced a record amount of red meat in 2023, with 7,028,900 cattle slaughtered, a 20% increase from 2022. 

Lamb production also increased by 12.05% to 246,003 tonnes. 

China, on the other hand, imports a lot of meat. 

In 2022, China imported over 92 million metric tons of meat, including 1.7 million tons of pork, 2.7 million tons of beef, 0.6 million tons of poultry, and 0.4 million tons of mutton and lamb. 

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