Via the AFR:
China has slapped a ban on Australia’s biggest grain exporter – a co-operative with about 4000 farmer members – after claims customs authorities found pests in a shipment of barley.
China customs suspended barley imports from CBH, based in Western Australia and run by former BHP iron ore boss Jimmy Wilson, on Tuesday.
The ban, which comes on top of huge tariffs on Australian barley imports imposed in May, was publicised on a official WeChat account.
Clive Palmer last night floated an idea first proposed by LVO in May (here and here), Australia should tariff iron ore to China every time it raises the trade war stakes, via SkyNews:
If China tried to source dirt elsewhere then the price would skyrocket.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
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Daily iron ore price update (preposterous output)
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I really really really hope we are put in a corner to do this.
Chinese newspaper headlines reasons for grains ban:
“Poor white trash of Asia caught selling weeds to China”
With enemies like China who needs friends?
I’m thinking of sending Xi a thank you card just for the closed border.
It’s called Market Power Mr Morrison. I suggest you use it.
Yeah, they openly allow and encourage their masters to use it on us, the ‘masses’, all the time.
Us yes, but too scared to use it on CCP
I dont think there is any mileage threatening to put a tariff on iron ore even behind closed doors. Put it on and then have the discussion behind closed doors about how it might be removed. Call their bluff.
Will Twiggy and Gina approve? They’ll decide.
And Clive would have just irritated them both a great deal with that call. Billionaire fight? Kerry Stokes v Clive has played out on the front page of the West Australian
Funny that. Rumours going round that Twiggy is travelling freely between WA and PNG, whilst Clive remains locked out!
We are screwed long-term either way…China is going to build out Africa now no matter what. So our choice is raise prices/restrict volumes now (and increase profits) or don’t. We should do it.
Adding a tariff would see the money flow to the Gov. Restricting volumes would enrich BHP/RIO/FMG. Use tariffs, stick it in a Sov fund, invested OS to ease the currency.
someone was a little quicker suggesting this than LVO
Don’t need a tariff, just increase the royalties. Then rebate back to Koreans and Japan.
> an idea first proposed by LVO in May (here and here), Australia should tariff iron ore to China
Ahem!
https://www.macrobusiness.com.au/2020/04/let-china-burn/
An export volume auction is much better than a tariff.
For one thing it can be justified without reference to China. Why admit that?
https://theglass-pyramid.com/2015/05/29/iron-ore-a-national-iron-ore-export-volume-auction-is-the-best-solution/
Set a national export volume for iron ore at say 600M tonnes and let the miners Or anyone else bid for a chunk.
Great idea, but way to clever for Canberra to grasp.
The tariff idea may have unintended consequences. Would not increasing the cost to China make less attractive deposits more attractive to invest in and mine.