FED:China dumping cheap goods in Aust: unions

AAP General News (Australia)
04-20-2011
FED:China dumping cheap goods in Aust: unions

SYDNEY, April 20 AAP - Manufacturing is under threat because China is dumping cheap
goods in Australia, flying in the face of World Trade Organisation rules, union groups
say.

Three of the nation's largest unions are urging the federal government to adopt a strict
rule of law approach to illegal trade practices.

"Let's not be blind to the policy related threats which encircle our local manufacturers
and workers - from those countries prepared to subsidise their own and see their output
dumped onto our market below cost," they said in the discussion paper, Don't dump on Australia.

"The sustainability of Australia's manufacturing sector is under threat."

The paper singles out the Chinese government as one which "intervenes directly and
extensively" in its economy to benefit its industries.

It also says China dumps products below "normal value".

Dumping occurs when an overseas company exports its products to a country below the
cost it sells for at home.

Duties can be applied by the government against the overseas company so that local
manufacturers are able to compete on a level playing field.

Roundtable discussions in Sydney on Wednesday were hosted by the Australian Workers
Union, the Construction Forestry, Mining and Energy Union as well as the Australian Manufacturing
Workers Union.

Also participating are industry representatives from Kimberly-Clarke Australia, One
Steel and the Australian Industry Group.

"Under current laws, Australian manufacturers are immediately on the back foot when
it comes to fighting dumped goods from overseas," said independent Senator Nick Xenophon,
who was also at the meeting.

"The system as it stands needs to change. It shouldn't be so hard for local companies
to get their case heard and to have dumping duties applied against foreign companies doing
the wrong thing."

Senator Xenophon recently introduced a private member's bill to give greater support
to Australian manufacturers and support local jobs.

AAP eb/tr/bwl

KEYWORD: DUMPING

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