The Anti-Dumping Commission’s investigation into alleged dumping and illegal subsidisation of A4 copy paper imported into Australia has been finalised, with the Parliamentary Secretary ruling that paper companies in China, Brazil, Indonesia and Thailand have caused material injury to the Australian paper industry from dumping, and countervailable subsidies.
While the investigation has been taking place, Australia’s last paper manufacturer, Australian Paper, based out of Maryvale in the LaTrobe Valley has cut the pay of its production workers, and cut the hours of its maintenance workers. Australian Paper says that the dumping of A4 copy paper in Australia has directly affected this.
The investigation, which was initiated by a submission from Australian Paper, the last paper manufacturer in the country, sought to discover whether the Australian paper industry had suffered material injury due to loss of sales volume, price suppression, price depression, reduced profits, and reduced revenue from A4 copy paper as a result of price undercutting from foreign paper exporters.
Craig Laundy, assistant minister for Industry, Innovation and Science, is the Parliamentary Secretary who handed down the decision.
Laundy says, “I am satisfied that the amount of the export price of the goods is less than the normal value of those goods, and because of that material injury to the Australian industry producing like goods would or might have been caused if security had not been taken.
“Therefore, I declare that the Dumping Duty Act applies to the goods and like goods that were exported to Australia from China and Thailand on or after 30 September 2016, and like goods that were exported to Australia from Brazil and Indonesia for home consumption on or after 7 November 2016.
“I am also satisfied that the export price of like goods exported to Australia in the future may be less than the normal value of the goods. I declare that that section of the Dumping Duty Act applies to like goods that are exported to Australia after the date of publication of this notice.
“This declaration applies in relation to all exporters of A4 copy paper from Brazil, China, Indonesia (except Pt Pabrik Kertas Tjiwi Kimia TBK) and Thailand.”
In relation to countervailable subsidies made, Laundy says, “I am satisfied as to the goods that have been exported to Australia from China, that countervailable subsidies have been received and because of that, material injury to the Australian industry would or might have been caused if security had not been taken. Therefore, I declare that section 10 of the Customs Tariff (the Dumping Duty Act) applies to the goods and like goods exported to Australia on or after 20 December 2016.
“I am also satisfied that countervailable subsidies may be received on goods exported to Australia in the future, causing material injury to the Australian industry, and therefore I declare that section 10 of the Dumping Duty Act applies to like goods that are exported to Australia after the date of publication of this notice.
“This applies in relations to all exporters of the goods and like goods from China, with the exception of UPM and Asia Symbol.”
As AP has previously reported, due to a 1995 piece of legislation determining China and Indonesia as ‘developing countries’, the legal threshold for countervailable subsidies is two per cent, which was not surpassed by Asia Symbol, UPM, and UPM China.