At the latest stage of easing trade relations, China is preparing to lift restrictions on Australian beef and timber. Insiders said that after the deterioration of relations between the two countries under the leadership of the Morrison Government, China would gradually lift the political sanctions imposed on Australia's exports of 20 billion Australian dollars.(Source:Australian financial News)

Major players in the Australian beef and timber industry and media reports approved by the Chinese government said on Monday that the restrictions on Australia's two main export products are expected to be lifted soon, which may make hundreds of exporters relieved. The wine industry also hopes to sell back to China this year.

Beef exporters also said that the processing time of Australian products in Chinese ports has greatly accelerated in the past month, which they attributed to a more positive political climate and China's relaxation of restrictions on the COVID-19 epidemic.

Patrick Hutchinson, Chief Executive Officer of the Australian Meat Industry Commission, said, "Now there is a dialogue suddenly, not only between ministers but also between the government and the government. Enterprises are also more confident to discuss the future potential with each other."

Other insiders said that Chinese timber importers had told them that they expected the ban to be lifted soon, although there was no official announcement. Since the Albanese government took office, the diplomatic relations between the two countries have begun to thaw.

Trade Minister Don Farrell said, "The latest situation of a series of products with trade difficulties shows that our trade relations with China will begin to relax and recover."

He was also informed that China was reordering Australian wood products. In 2020, Beijing suspended the export of wood from some Australian states, claiming that the wood was infected with pests. Because of these prohibitions, Australian logs have not been exported to China for more than two years, affecting the trade of about 600 million Australian dollars. China still imports about A $1 billion of wood chips from Australia every year.

"We see many positive signals, and we hope that Australia's log export will recover in the near future," said Victor Violante, deputy chief executive of the Australian Forest Products Association. "We hope these negotiations can resume, and we are ready to resume export soon."

After the anti-dumping investigation, China also imposed high tariffs on Australian barley and wine, and Canberra is challenging it through the World Trade Organization. Farrell said that Australia would not withdraw these applications, but hoped to resolve the dispute through negotiations with the Chinese government. He refers to the video meeting with Chinese Minister of Commerce Wang Wentao last week.

"But from the day I got the job eight months ago, I said that we are more willing to resolve all our pending trade disputes through discussion and dialogue, which is my message to China this week."