The Anti-Dumping Commission is once again investigating claims that imported A4 copy paper has been dumped into Australia, damaging the sole domestic producer, Australian Paper. Source: IndustryEdge, Timberbiz
Initial investigations estimate the dumping margin could be as much as 34%.
After receiving an application from Australian Paper, the Anti-Dumping Commission conducted its initial investigation into allegations of dumping against imports from Austria, Finland, Korea, Russia and Slovakia.
On 19 March, the Commission published its Consideration report (this is its initial formal report, and is available on the public record).
The Commission estimates dumping margins for each of the importing countries referenced in the application. The estimates were in some cases, substantial:
- Austria – 21.6%
- Finland – 16.9%
- Korea – 34.2%
- Russia – 4.2%
- Slovakia – 17.4%
Paper and forestry industry consultants, IndustryEdge, reported that the new claims come hot on the heels of the successful 2017 case that found copy paper from Brazil, China, Indonesia and Thailand had been dumped into Australia.
“It is no surprise there is more anti-dumping action coming on copy paper. After last year’s clear decision by the ADC, any hint of dumping from other countries was always going straight back to it.
“Very low priced copy paper imports have made it difficult for Australian Paper to provide price leadership, despite the rising price of pulp across the world.” IndustryEdge said.
According to the Commission: “Dumping occurs when goods exported to Australia are priced lower than their “normal value” which is usually the comparable price in the ordinary course of trade in the exporter’s domestic market.”
A dumping margin of 34% could mean, for example, that when sold in Australia, the product is that much lower priced than in the importing country’s home market.
Dumping is an unfair trade practice that can destroy local manufacturing industries.
Under the rules of the World Trade Organisation – and Australian law – dumping is illegal, and stiff penalties and extra duties can be imposed on those found to be dumping.
Matters involving dumping allegations are complex trade matters, typically taking months and even years to resolve.
“The successful 2017 case took more than a year to find that dumping of A4 Copy Paper from Brazil, China, Indonesia and Thailand had occurred and to impose penalties on imported products from those countries,” IndustryEdge reported.
The case, important for the entire forestry supply chain that delivers more than 750,000 m3 of hardwood per year into Australian Paper to manufacture copy paper and other office papers, will take until at least 21st August 2018 to be resolved.
