Eliminating 'Dumping' Headwinds for Australian
Industry
1.1
The dumping and, in effect, foreign government subsidisation of goods
exported to Australia is harmful to Australian manufacturers, producers and
jobs and must not be allowed to occur. Opportunistic and predatory exporters
who dump such goods look for weak international targets that don’t enforce
their WTO rights. For too long Australia has been seen as a 'soft touch' for
such predatory practices in effect an easy dumping ground for those who seek to
bend and break WTO rules. Therefore Australia must be seen to be tough and
responsive with respect to this non-compliant activity under WTO rules.
1.2
So while I support the recommendation of the Committee that this bill be
passed, much more can and must be done. I set out some further measures below
that need to be urgently implemented.
1.3
Initiating and prosecuting an anti-dumping claim can be arduous and
expensive. As such:
- An independent advocacy and advisory service similar to the previous
International Trade Remedies Advisory Service is needed to assist SME Australian
producers determine whether a prima facie case of dumping, countervailable
subsidies or duty circumvention exists, to prepare and lodge an application
with the Commission and to support an applicant through the anti-dumping
screening, investigation and administrative review processes.
-
The current application process to complain about dumping has been
criticized as extremely complex, expensive and bureaucratic from those in
industry that I have spoken to. Adopting a simplified application process for SMEs
is essential. The European Commission's approach would still satisfy the need
to be WTO compliant but would reduce the burden on the Australian industry
applicant to extract and present, in some cases, extraneous and irrelevant
information.
-
The shift to the European Commission styled 'inquisitorial' styled
application process would see the Commissioner drawing out the relevant merits
of a case without placing a 'blanket' burden on the Australian industry SME
applicant to do so. This ensures that the best available information forms the
basis of a decision to initiate, what invariably turns into an expensive and
time consuming formal investigation process for industry, market stakeholders
and the taxpayer.
1.4
The Anti-dumping Commissioner needs to have an increased focus on
countervailable subsidy investigations. As Australia has become more effective
in investigating the dumping of imported goods causing material injury to
Australian producers, the role of countervailable subsidies has continued to
grow. The investigation of foreign governments' countervailable subsidy
programs is extremely expensive and beyond the reach of most Australian
industry members. To address this growing problem the Commissioner needs to direct
additional resources to this.
1.5
Consistent with the recommendations of the 2012 Brumby 'Review into
Anti-Dumping Arrangements', the Anti-dumping Commissioner needs to further
address the shortage of staff with appropriate skill sets to execute his
functions. The increased use of independent non-government experts, especially
during exporter verification visits, needs to be implemented as a matter of
urgency.
1.6
The power to collect any short-fall in duty payable needs to be
addressed immediately. The current optional Duty Assessment process encourages
exporters and importers to continue to trade in dumped goods, in some cases by
greater magnitudes of dumping, with no risk of back capture of underpaid
duties.
Recommendation 1
1.7
That the bill be passed, but the additional measures outlined in
paragraph 1.3 through 1.6 above be implemented as soon as practical.
Nick Xenophon
Senator for South Australia
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