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Australia to Tighten Anti-Dumping Rules to Protect Domestic Industries
Apr. 23, 2025 09:20AM PST
In light of rising global trade tensions and concerns over a surge in cheap imports, the Australian government has committed AU$5 million to expand the capabilities of its Anti-Dumping Commission.
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In the wake of tariff turmoil caused by the Trump administration's recent actions, Australian Prime Minister Anthony Albanese has proposed reforms to the country's anti-dumping system.
In an April 3 statement, he emphasised the importance of safeguarding key sectors like steel, aluminium and manufacturing in the face of unfair competition. The government claims an overhaul would level the playing field for local manufacturers, while critics are warning of potential trade disputes with key partners like China.
The Albanese government has said it will provide AU$5 million to boost the Anti-Dumping Commission's ability to track claims of dumped imports. Ed Husic, minister for industry and science and a member of Albanese's Labor Party, called on the anti-dumping commissioner to take strong action in an April 1 statement of expectations.
"I expect you to use all the powers available to you to ensure that Australian manufacturers are not injured by unfair trade through dumping and subsidisation," Husic said, asking the recently reappointed commissioner to "consider the strategic environment" and act on "effective, timely and accessible remedies to unfair trade."
He further stated, "I expect you to lead a world-class trade remedies authority. I expect your advice, recommendations and decisions to be developed and discharged in line with relevant legislation; Australia’s international obligations; and to be robust, evidence‑based and provide certainty for all users of the anti-dumping system."
The commissioner has yet to respond; the government has said a statement will be published once available.
What is dumping?
Dumping occurs when a country or company exports goods to another market at prices below their normal value, often due to government subsidies or predatory pricing strategies.
This practice can distort competition, undercut domestic producers and harm local industries.
Anti-dumping measures, such as tariffs or import restrictions, can be imposed to counteract these unfair trade practices and protect homegrown businesses. Australia’s latest anti-dumping reforms aim to strengthen its ability to detect and penalise dumping, ensuring a fairer market for local manufacturers.
Australia's current anti-dumping system allows Australian manufacturers to apply for anti-dumping or countervailing duties when they believe dumped or subsidised goods being imported into Australia are harming their business.
The government notes that dumping is not prohibited or illegal under World Trade Organisation (WTO) international agreements, but also states that it is defined as anti-competitive behaviour.
In the context of the recent trade tensions and tariffs, Australia's anti-dumping measures are seen counteracting the influx of cheap imports while maintaining obligations under free trade agreements and WTO rules.
How do anti-dumping measures help Australia?
Given the imposition of tariffs, various countries, including Australia, could struggle to sell their products in the US and choose instead to dump them at lower costs in other markets.
This means potentially depriving local manufacturers of their full profits. The Guardian notes that in the worst-case scenario, these manufacturers could be forced out of business.
Strengthening anti-dumping capabilities means protecting the chances of these local manufacturers.
It's important to note that dumping is not always bad, especially if local producers aren't being disadvantaged.
According to TheGlobalEconomy.com, manufacturing makes up 5.36 percent of Australia’s economy. This is half of the world average of 12.33 percent, based on data from 153 countries.
Despite the smaller number, Australia sees manufacturing as a critical component of its economic landscape given that it's responsible for 45 percent of the nation's merchandise exports.
Manufacturing also contributes to 25 percent of total research and development spending in the country.
How does anti-dumping relate to mining?
Anti-dumping is relevant to the mining industry as protecting manufacturers equates to safeguarding domestic industries that supply essential materials and services to mining operations.
Steel is a major element in the manufacturing industry, with Australia currently having 44 anti-dumping measures in place on 12 steel products from 14 countries. Anti-dumping also protects downstream industries, given that mining supplies raw materials such as iron ore and bauxite used for steel and aluminum.
The Australian Steel Institute has said that robust anti-dumping provisions serve as a national defense against unfair trade practices. These policies prevent market distortions caused by dumped imports, helping maintain the viability of both manufacturing and mining sectors.
Anti-dumping and other Australian initiatives
Australia recently established a critical minerals strategic reserve to enhance the mining sector.
A report from Discovery Alert describes the reserve as a "strategic stockpile that emerges as a dual-purpose mechanism," saying that it will simultaneously incentivise domestic exploration and production, while establishing a national buffer against supply chain disruptions. This will assist in anti-dumping efforts by ensuring stable domestic supply of lithium, rare earths and the like, all of which are used in advancing manufacturing sectors.
The critical minerals strategy is also a show of national resilience, which complements the anti-dumping strategy. Foreign countries often use export restrictions or price wars to manipulate the global market raw materials scene.
By establishing a critical minerals reserve, Australia is protecting domestic industries, such as mining and high-tech manufacturing, from the risks of artificially low-priced imports and potential geopolitical leverage by foreign suppliers.
On February 11, the Future Made in Australia (Production Tax Credit and Other Measures) Bill 2024 passed through parliament. This means two additional tax incentives, namely:
- A Hydrogen Production Tax Incentive worth AU$2 per kilogram of renewable hydrogen produced.
- A Critical Minerals Production Tax Incentive worth 10 percent of eligible processing and refining costs for Australia’s 31 critical minerals.
At the time of this writing, the Australian Anti-Dumping Commission has identified 24 imported products or commodities that it believes are being sold in Australia at unfairly low prices. The list includes zinc-coated steel, aluminum extrusions and precision pipe and tube steel, all usable for mining.
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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
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