Federal Trade Minister, Don Farrell, and Foreign Minister, Penny Wong, made the announcement yesterday of a new process involving both countries, which could lead to the barley market resuming for Australian grain producers and industry in the coming months.

In May 2020, tariffs were placed on Australian barley exports to China and a dispute process has been underway with the World Trade Organisation (WTO).

While other exports markets have purchased Australian barley over the past two years, and trade for other important Australian grains such as wheat have continued with China, growers would welcome the return of the China market, GPA chair, Barry Large, said.

Large said the re-opening of the Australian barley exports to China would be a win for consumers and industry in China and for Australian grain producers and exporters.

"We welcome this new process and look forward to a positive outcome. Barley is an important rotation crop for Australian growers and any optimism on the future outlook is good. This process to reach a resolution would be significantly shorter than if the WTO process continued.

"We welcome the Labor Government's constructive dialogue and positive progress towards stabilising the relationship with China, and creating this process and opportunity to recommence the barley trade."

The two-step process will see China initiate an expedited review of import duties on Australian barley, this week. The review, over three months, will include an option to extend, and also time to implement the review's findings.

Australia will also temporarily suspend the WTO dispute which was filed yesterday in Geneva during a similar period - and if the duties are removed (resulting from the China review) the case will be withdrawn.