Australia to Take China to WTO Over Barley Tariffs

Australia's barley exports to China had been worth around US$1 billion a year before a recent drought |AFP
Australia's barley exports to China had been worth around US$1 billion a year before a recent drought |AFP
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Australia to Take China to WTO Over Barley Tariffs

Australia's barley exports to China had been worth around US$1 billion a year before a recent drought |AFP
Australia's barley exports to China had been worth around US$1 billion a year before a recent drought |AFP

Australia said Wednesday it will ask the World Trade Organization to probe Chinese tariffs on barley imports, ramping up tensions between the two a day after Canberra hit out at a reported ban on coal exports as a breach of WTO rules.

The move would mark the first time Australia has taken a complaint to the group but Trade Minister Simon Birmingham warned further actions could follow in other sectors as relations between the trading partners continues to sour.

He said Beijing's 80 percent surcharge on barley shipments from Australia "lack basis" and "are not underpinned by facts and evidence".

"We are highly confident that based on the evidence, data, and analysis that we have put together already, Australia has an incredibly strong case," Birmingham added.

China argues that the grain is produced with government subsidies and sold below cost, so is subject to anti-dumping duties.

Australia's barley exports to China had been worth around US$1 billion a year before a recent drought, and are used most notably in beer-making.

Industry body GrainGrowers Australia welcomed the decision and said Chinese tariffs could cost the sector around US$1.9 billion over the next five years.

Experts say Beijing has been considering restricting Australian barley imports since 2018 owing to worries that China -- which produces only around 20 percent of what it needs of the crop -- is overly dependent on imports.

Australia-China relations are at their lowest ebb since the 1989 Tiananmen Square crackdown, with Beijing rolling out a string of economic sanctions against Australian products.

Each dispute has been billed as a technical issue, but many in Canberra believe the sanctions are retribution for Australia pushing back against Chinese influence at home and in the Asia-Pacific, as well as its call earlier this year for a probe into the origins of the coronavirus.

At least 13 Australian sectors have been subjected to tariffs or some form of disruption, including beef, coal, copper, cotton, lobsters, sugar, timber, tourism, universities, wine, wheat, and wool.

On Tuesday, Prime Minister Scott Morrison said Beijing had yet to confirm state media reports that Australia's multibillion-dollar coal exports are now subject to an informal ban.

The Global Times said Sunday that power plants were being steered toward buying their coal domestically, as well as from countries other than Australia.

"If that were the case, then that would obviously be in breach of WTO rules," Morrison said. "It would be obviously in breach of our own free-trade agreement and so we would hope that is certainly not the case."

The tensions have called into question Australia's highly successful economic model -- based on supplying the raw materials for China's breakneck emergence as a modern economy.

China's foreign ministry on Tuesday said that any trade measures taken against Australia were "in line with China's laws and regulations and international practices. They are also responsible steps to safeguard the interests of domestic industries and consumers".

"Recently we've seen many reports in which Australia dresses up as a victim, pointing an accusing finger at China, directly or by insinuation. This move is meant to confound the public and we will never accept it."

Australia had until now shied away from taking the disputes to the Geneva-based organization, fearing resolution could take years, open Australia up to retaliatory claims and worsen relations further.

But Birmingham said: "We have a series of different actions that China has taken during the course of the year and each come with slightly different criteria for how you might respond at the WTO."



World Bank Sees Saudi Budget Deficit Halving, Current Account Surplus of 3.3% in 2026

 Riyadh, Saudi Arabia (Reuters)
Riyadh, Saudi Arabia (Reuters)
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World Bank Sees Saudi Budget Deficit Halving, Current Account Surplus of 3.3% in 2026

 Riyadh, Saudi Arabia (Reuters)
Riyadh, Saudi Arabia (Reuters)

As regional economies reel from a complex and uncertain geopolitical landscape, with shipping disruptions through the Strait of Hormuz adding pressure, the latest World Bank report points to standout resilience in Saudi Arabia’s economy.

The data show the kingdom on a fiscal consolidation path to strengthen its fiscal position, with the budget deficit set to halve and the current account shifting from deficit to surplus.

April data from the World Bank indicate Saudi Arabia has not only built solid “economic buffers,” but is also leveraging geopolitical pressures to advance structural reforms.

While much of the region faces sharp fiscal strain and negative growth, the kingdom is moving steadily ahead, recording the strongest growth among regional peers and reinforcing its role as a pillar of regional stability.

Despite broad downward revisions, Saudi Arabia remains the region’s top performer. Growth forecasts for the wider region have been cut to 1.8%, while the kingdom is expected to expand by 3.1%.

Current account shifts to a 3.3% surplus

World Bank data point to a shift in Saudi Arabia’s current account. After a projected deficit of 2.7% of GDP in 2025, forecasts for 2026 point to a surplus of 3.3%.

A current account surplus means exports of goods and services exceed imports, strengthening the balance of payments. It also reflects rising net foreign assets and stronger financing capacity, supported by solid export performance and moderate domestic demand.

The shift carries broader weight. Moving from deficit to surplus positions, Saudi Arabia becomes a net lender to the global economy, with oil export revenues, fast-growing non-oil sectors, and returns on foreign investments outpacing spending on imports and services.

Beyond the headline figures, the surplus acts as an external buffer, supporting currency stability and generating strong liquidity flows. This gives financial institutions and sovereign funds greater room to sustain investment in major development projects, while helping shield the economy from disruptions in global supply chains and shipping routes.

Deficit set to halve

Fiscal data show improved expenditure control and revenue growth. The World Bank expects the deficit to narrow from 6.4% of GDP in 2025 to 3.0% in 2026, below the Finance Ministry’s estimate of 3.3%.

The shift reflects tighter fiscal discipline. Despite the cost of regional tensions, the gap between revenue and spending is set to shrink by half in one year.

This reflects effective fiscal policy, including stronger tax collection and public financial management, rising non-oil revenues that reduce reliance on energy price swings, and more efficient public spending focused on high-impact development projects, limiting the need for external borrowing and supporting long-term fiscal balance.

Saudi Arabia leads per capita growth

The April 2026 report also shows a sharp divergence in per capita growth across the region. While countries such as Kuwait (-7.7%) and Qatar (-7.4%) face steep contractions, Saudi Arabia stands out with an expected per capita growth rate of 1.4%.

Inflation remains contained at 2.8%, helping preserve purchasing power despite global increases in energy and shipping costs driven by maritime disruptions. This stability protects the broader economy from imported inflation pressures.


European Development Bank Unveils 5 Bn Euros for War-hit Economies

A Lebanese man walks past destruction at the site of an Israeli airstrike the day before that targeted a building in Beirut on April 9, 2026. (Photo by Ibrahim AMRO / AFP)
A Lebanese man walks past destruction at the site of an Israeli airstrike the day before that targeted a building in Beirut on April 9, 2026. (Photo by Ibrahim AMRO / AFP)
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European Development Bank Unveils 5 Bn Euros for War-hit Economies

A Lebanese man walks past destruction at the site of an Israeli airstrike the day before that targeted a building in Beirut on April 9, 2026. (Photo by Ibrahim AMRO / AFP)
A Lebanese man walks past destruction at the site of an Israeli airstrike the day before that targeted a building in Beirut on April 9, 2026. (Photo by Ibrahim AMRO / AFP)

The European development bank said Thursday it was unlocking five billion euros ($5.9 bn) to help shore up economies hit by the Middle East war.

The European Bank for Reconstruction and Development (EBRD) said it will "deploy EUR5 billion in 2026 in economies impacted by Middle East conflict".

The funds would be focused on Iraq, Jordan, Lebanon, the West Bank and Gaza "and affected neighboring economies" including Egypt, Türkiye, Armenia and Azerbaijan, the bank said in a statement.

"The economic and social impact of the conflict is already being felt across many of the bank's economies in the form of disrupted trade routes, energy and commodity shocks, weakened investor confidence and broader costs to the population," it added.

Established in 1991 to help former Soviet bloc nations embrace free-market economies, the bank later extended its reach to the Middle East and Africa.

"In a time of rising uncertainty, we are stepping up where others may pull back," said EBRD president Odile Renaud Basso.

"We are here to support economies, clients and people in our countries of operation in tough times," she added.

The bank said "the volume of conflict response investment will be demand driven due to the fast-changing nature of the situation".

The funds will provide immediate relief "by supporting economic activity" and "fostering financial sector stabilization".

EBRD will aim to strengthen energy security and aid state-owned enterprises to "ensure the uninterrupted provision of essential goods and services".

On Thursday it had approved "a project to support Lebanon's retail chain," it said, adding it also aimed to safeguard access to jobs, finance and essential services.

Since starting operations in the southern and eastern Mediterranean in 2012, the EBRD has invested more than EUR26.5 billion in 489 projects in the region.

In Türkiye alone, the lender has committed more than 23 billion euros since 2009.


Saudia to Partially Resume Flights To, From Dubai, Abu Dhabi, and Amman on Saturday

One of Saudia’s aircraft (company website)
One of Saudia’s aircraft (company website)
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Saudia to Partially Resume Flights To, From Dubai, Abu Dhabi, and Amman on Saturday

One of Saudia’s aircraft (company website)
One of Saudia’s aircraft (company website)

Saudia announced on Thursday the partial resumption of its operations to and from Dubai, Abu Dhabi, and Amman starting Saturday, April 11.

In a post on its official account on the social media platform X, the airline said the resumption will be carried out through the operation of exceptional daily flights to and from those destinations.

Saudia advised passengers to check the status of their flights before heading to the airport, noting that further updates will be published through its official channels.