Additional Comments by Senator Nick Xenophon

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:

  1. 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.
  2. 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.
  3. 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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