A clearer picture is emerging of the damage from China’s new trade restrictions on beef, with Western Australia shipping almost $130 million of the meat annually to the country.
The world’s second biggest economy slapped the global industry with a cap and tax on New Year’s Eve following a long investigation by its Ministry of Commerce.
Australian sales of the red meat will be limited to 205,000 tonnes in 2026 and any further shipments will suffer a 55 per cent tax. Other producers including Brazil and the United States were also hit with similar rules.
Analysis by the Department of Primary Industries and Regional Development shows China was the top destination for WA beef eight years running.
Sales were worth $129 million through 2025, according to the data obtained by The West Australian. More than 13,000 tonnes were shipped through the year, or about 29 per cent of WA’s beef trade.
It’s expected between 20 to 30 per cent of national production would be subject to the tax — so roughly $25m to $40m of WA exports would be affected.
Suppliers such as Harvey Beef will need to scramble to unlock new markets in the wake of the trade manoeuvre.
The State Government has sought a briefing from Federal officials to further clarify the impact.
Australia has a free trade agreement with China which reportedly allows for exports of up to 190,000 tonnes tax-free, and a 12 per cent tariff for additional shipments.
The Federal Government will seek to leverage that deal to renegotiate a better outcome before the quota is hit, with analysts expecting the threshold will be met mid-year.
Nationals leader David Littleproud last week said “China’s announcement is devastating to the beef industry” while Prime Minister Anthony Albanese said the government would be “advocating” for the sector.
“This is something that wasn’t Australia being singled out, this is a general position that China has put,” Mr Albanese said.
“Australian beef is, in my view, proudly as the Australian Prime Minister, the best in the world.”
A spokesperson for China’s Ministry of Commerce told reporters on Wednesday that the measures were “moderately strong”.
“The purpose of implementing safeguard measures on imported beef is to help domestic industries overcome their current difficulties, not to restrict normal trade,” they said.
https://thewest.com.au/business/economy/china-beef-trade-war-clearer-picture-emerges-on-was-exposure-to-meat-export-tax-c-21202509


