ALP plan to tackle cheap import dumping

Emergency tariffs on imports could be imposed on Australia’s trading partners if Labor wins the election.

Opposition industry spokesman Kim Carr. Picture: AAP

Emergency tariffs on imports could be imposed on Australia’s trading partners if Labor wins the election, with opposition industry spokesman Kim Carr also warning that Donald Trump’s policies could lead to a “flood” of cheap metals being dumped in Australia.

Senator Carr said he was concerned the Trump administration’s pursuit of its trade interests would have “serious consequences for Australian industry”.

“We’re seeing it in iron and we’re seeing with steel, we’re seeing it with aluminium, we’re seeing it with a range of products,” Senator Carr said. “The American government is pursuing its trade agenda, which has profound consequences for Australia. It’s a time now when we should have heightened vigilance to ensure that there is not a backwash that overwhelms Australian industry.”

Senator Carr, who would be in charge of the anti-dumping commission if he remains in the job following the election, criticised the Coalition for not using “safeguard” measures that increase tariffs or introduce quotas to combat surges of cheap imports from abroad that disadvantage Australian companies. The temporary tariffs or quotas — called “safeguard” measures — would apply to all imports from all countries of a particular product and involve public hearings and formal notifications to the World Trade Organisation. It is effectively the next step up from the anti-dumping fines and investigations the Australian government already undertakes.

“Of course I would (like to see safeguards used more). There is no point in having an anti-dumping commission that fulfils its functions with diligence only to have it circumvented by international cartels that want to use Australia to offload their products,” Senator Carr said. “These are important mechanisms under the World Trade Organisation principles and they should be used.”

The Trump administration announced last year that it would impose tariffs on steel and aluminium imports.

While Australian imports have avoided the duties so far, the taxes hit products from Europe, Mexico and Canada. Senator Carr argued the move would redirect global supply chains and could lead to exporters looking to dump excess product previously sold to the US in Australia.

But any move to initiate anti-dumping safeguards or emergency tariffs could make Australian agriculture exporters nervous — particularly when China launched an anti-dumping investigation into Australian barley imports late last year.

A Coalition source said Chinese officials often pointed to Australian anti-dumping invest­igations and penalties when countering Australian arguments about Beijing’s protectionism.

Industry Minister Karen Andrews announced more anti-dumping duties on imported paper from Finland, Korea, Russia and Slovakia this week, ranging from 3.8 to 16.4 per cent.

“These duties will assist Australian paper to more strongly compete with overseas manufacturers in a fairer economic environment,” she said.

Last year the World Trade Organisation singled out Australia as a global leader in imposing these sorts of trade sanctions, with trade experts blaming the report card on bipartisan “odious protectionism” of the steel industry.

Australia was listed as the third most active WTO member to impose anti-dumping measures in 2017, behind India and the US, and the fourth most active in initiating anti-dumping investigations.

Labor has proposed to triple these lower-level anti-dumping penalties.

Economic Law lecturer at the University of New South Wales, Weihuan Zhou, has said while this could benefit a small group of industries that compete on imports, such as those producing steel and A4 copy paper, it could hurt manufacturers by increasing the price of inputs for Australian produced goods.