China lifts restrictions on Australian abattoirs as trade tensions ease

China has lifted suspensions on three Australian abattoirs as it continues to ease trade restrictions on Australian goods.

Meat exports were suspended from two of the abattoirs in mid-2020, and from the third in early 2022, after COVID-19 cases were reported among workers at the plants.

But analysts said the protracted bans were part of a campaign of economic punishment conducted by China against Australia due to political tensions.

The decision means that Teys at Naracoorte, Australian Lamb Company at Colac and JBS at Brooklyn will once again be able to send their products to China.

Since May 2020, 10 Australian abattoirs have been suspended from trade with China.

Seven remain on China’s trade blacklist, with Beijing alleging the exporters have wrongly labelled or contaminated meat.

Trade Minister Don Farrell told the ABC that Beijing’s latest decision was “another positive step towards the stabilisation of our relationship with China”.

“The Albanese government will keep pressing for the remaining trade impediments to be removed as soon as possible,” he said.

China has already lifted trade barriers it placed on several Australian goods in 2020 and 2021, including crippling tariffs on barley.

Trade barriers remain on red wine, lobster and meat exporters. 

Beijing agreed to “review” hefty tariffs on Australian wine, with a decision expected next year.

Patrick Hutchinson from the Australian Meat Industry Council said hundreds of millions of dollars of trade with China had been lost due to the series of bans. 

He welcomed the resumption of trade from the three meatworks.

“It’s been a long haul, and we’re certainly by no means over it yet, but it’s a good start.”

Victorian-based meat industry analyst and trader Simon Quilty said the export bans “had taken away one of the most important markets” and had had an enormous impact on the businesses.

China is Australia’s biggest importer of lamb and mutton, and the second-biggest importer of Australian beef.

“Without doubt, this is welcomed by everyone,” he said.

In 2019, before the suspensions Australia’s red meat trade with China was about $3 billion. 

Despite the trade bans, several Australian abattoirs have continued to trade throughout the diplomatic tensions. 

Australian Country Choice, Kilcoy Pastoral, JBS-owned Beef City, JBS Dinmore, Northern Cooperative Meat Company, John Dee and Meramist meatworks remain suspended.