The Australian government has reached a deal with China that could lead to lifting tariffs on barley introduced in 2020.

The Australian foreign affairs and trade ministries said jointly on Tuesday that the deal would create a pathway toward resolving the dispute.

Australia said China agreed to “undertake an expedited review of the duties’’ over the next three to four months. During this time, Australia will suspend its proceedings against Beijing before the World Trade Organisation (WTO).

If the duties are not lifted at the end of the review period, Australia will resume the dispute in the WTO.

China imposed more than 80 per cent tariffs on Australian barley in 2020, which resulted in the exports being effectively blocked from the market.

Beijing accused barley producers of receiving subsidies and dumping grain on the Chinese market at a low price. Canberra has denied the allegations.

When China imposed the tariff in 2020, relations between the two countries became increasingly strained.

Beijing was angered by Canberra banning Chinese telecommunications giant Huawei from setting up a 5G network in Australia.

China placed a string of trade tariffs and customs delays on several Australian exports – including wine, beef and coal.

(dpa/NAN)