The Ministry of Commerce said it will drop anti-dumping and anti-subsidy tariffs on Australian barley imports that had been in place for three years curbing billions of dollars of trade, as the two countries work to repair strained trade ties.

In a notice published on Friday, the ministry said it is "no longer necessary" to keep such restrictions, citing a changing situation in the Chinese barley market.

The tariff will be dropped from Saturday.

Beijing imposed levies on key Australian exports such as barley, beef and wine in 2020. It also stopped imports of some of Australia's most significant commodities, including coal, which curbed billions of dollars in trade.

In response, Australia said it will drop a case against the world's second-biggest economy at the World Trade Organisation, which was paused earlier this year as the countries' trade ministers stepped up negotiations.

"We welcome this outcome, which paves the way for our barley exporters to re-enter the Chinese market – benefiting Australian producers and Chinese consumers," Australia's foreign minister Penny Wong said in a statement.

However, the Australian Trade, Foreign and Agriculture ministers said it will continue its case at the WTO over China's tariffs on Australian wine.

Beijing implemented tariffs of 80.5 percent on Australian barley in May 2020, wiping out imports of the grain by the world's biggest beer market, worth as much as US$986 million a year. (AFP/Reuters)