Jacinta Collins (Victoria, Australian Labor Party, Shadow Cabinet Secretary) Share this | Hansard source

Dumping, the sale of products on the Australian market below their normal price on a foreign exporter's home market is a major threat to manufacturers in this country. Dumped products are often inferior in quality to local products, and in some cases their export to Australia has the potential to undermine strategically vital industries such as steelmaking and construction.

Labor fully supports the Customs Amendment (Anti-Dumping Measures) Bill 2017, which closes a loophole that allows overseas exporters to evade Australia's antidumping regime. At present, it is possible for exporters who have had dumping duties imposed to cease exporting or export low volumes at high prices before applying for a review of antidumping measures imposed on them. The 12-month interruption of normal export behaviour makes it difficult for the Anti-Dumping Commission to determine the appropriate export price, and dumping duties can be revised to zero per cent. This effectively clears the slate for the foreign exporter, allowing a resumption of dumping without penalty or restriction for up to 18 months.

This bill was unanimously supported by industry stakeholders who made submissions to the inquiry by the Senate Economics Committee. They included BlueScope Steel, the Manufacturers' Trade Alliance, the Australian Steel Institute and unions with members in manufacturing and construction: the AMWU, the AWU and the CFMEU. BlueScope's submission explained that they have witnessed a surge in the number of requests by Chinese and Taiwanese steel exporters for reviews of antidumping measures. BlueScope said:

It became obvious that a new strategy had been employed by a large number of these exporters to exploit a 'gap' …

The strategy was to withdraw from the Australian market for a year and then request a review with a view to securing a reduced duty. BlueScope surmised:

The outcome of such a strategy was to effectively guarantee a new interim anti-dumping duty of 0%.

The BlueScope submission stated that, in a three-month period, nine of 11 requests for a review of antidumping measures were made by foreign exporters who had ceased exporting to Australia for the 12-month period after duties had been imposed. All these exporters had their interim antidumping duty reduced to zero. As a result, they resumed exporting to Australia immediately.

Within three months of the minister's ruling, exports from China had increased by 300 per cent, with a price drop of 15 per cent. The exporters were therefore able to resume dumping products on the Australian market for 18 months. That is because affected local industries cannot apply for a review until a 12-month interval has passed, and it takes up to six months for a review to be completed.

This bill aims to eliminate this evasive tactic by foreign exporters. It sets out new methodologies to be used by the Anti-Dumping Commission in determining an export price when no goods have been exported or goods have been exported at low volumes. The changes are administrative. There is no substantial alteration to existing policy. The new review process will, however, allow the Anti-Dumping Commission to be more vigilant in blocking unfair trade practices that harm Australian industry. Labor is pleased that the government has heeded the concerns of affected local industries and their employees. We will therefore wholeheartedly support this bill.