Shorten’s plan to triple anti-dumping penalties misunderstands the law


Weihuan Zhou, UNSW

Bill Shorten’s proposal to triple anti-dumping penalties demonstrates a misunderstanding of dumping and its impact on the economy. It also misunderstands when anti-dumping measures may be lawfully applied and to what extent.

Shorten’s proposal is purportedly to prevent Australia from becoming a “dumping ground for cheap foreign goods sent here by trade cheats”. The Opposition Leader says Labor is a strong believer in trade, but it should be conducted on a “level playing field”. He also wants to give the Anti-Dumping Commission 30 new staff and new responsibilities.




Read more:
Australia may be engaging in ‘free trade’ but it’s becoming more protectionist too


There are no existing penalties in the World Trade Organisation (WTO) anti-dumping regime, or in Australia’s anti-dumping regime – that would be in breach of WTO rules. Australia’s current regime involves the use of anti-dumping measures to counteract injury caused by dumped imports to domestic industries. These typically take the form of import tariffs.

Anti-dumping measures like duties are not “penalties” as such, but simply taxes in the form of a customs duty to remove the injury caused by dumping.

In recent years, the use of anti-dumping measures has been on the rise predominantly to protect the steel industry in Australia.

Current dumping rules

“Dumping” is when an exporter exports goods to another country at an export price less than what it sells the same like goods in its own country. Under WTO rules, this is neither illegal nor unlawful.

It is a perfectly legitimate commercial practice. In fact, in 2016 the Productivity Commission found there was no compelling economic rationale for a country like Australia to act against dumping.

Rather than prohibiting the practice of dumping, WTO anti-dumping rules only provide a remedy where the dumping causes material injury to a domestic industry in the country of import, for example reduced revenues and profits. The remedy is the imposition of dumping duties, or customs duties.

This should be equal to or less than the margin of dumping – the extent to which an exporter’s export price is lower than its home market price.

It’s not clear how the “triple penalties” proposed by Shorten could be imposed in line with the WTO rules.




Read more:
It’s time to drop Australia’s protectionist anti-dumping rules


Increasing penalties could hurt the economy

Mr Shorten’s anti-dumping penalties would have several effects – including to increase prices of imported goods and inputs for Australian produced goods. This price rise would be passed on to Australian companies and consumers. For example, this would increase the cost of steel for construction industries.

Shorten’s policy would benefit a small group of import-competing industries, such as those producing steel and A4 copy paper, including companies that are wholly owned by foreign companies. But such policy completely ignores the interest of Australian manufacturers using imported materials, their employees or consumers.

Increased dumping penalties could also stifle competition, increasing prices. This could also increase unemployment, as the imposition of the penalties would make the cost of business uneconomical.




Read more:
Consumers lose out to Australia’s protectionist anti-dumping laws


Shorten’s policy on dumping seems misguided and ill-informed and can only operate to Australia’s detriment. These observations are consistent with the findings of the Productivity Commission that Australia’s anti-dumping system has become increasingly more protectionist and damaging.

In the interests of fair trade, similar penalties would need to apply to Australian companies engaged in dumping, and to both export and domestic sales to ensure a “level playing field”.

More fundamentally, as the Productivity Commission has observed, “fairness” does not provide a justification for anti-dumping measures which fail to consider the impact of such measures on the community as a whole.

What’s more, Shorten’s “triple penalty” could drag Australia into the ongoing trade conflict and harm Australian consumers and industries using imports from China. If the “triple penalty” provokes China’s retaliation, that will hurt Australian goods and services exporters.

The ConversationThis article was co-authored by Andrew Percival, Principal at Percival Legal.

Weihuan Zhou, Senior Lecturer and member of China International Business and Economic Law (CIBEL) Initiative, Faculty of Law, UNSW Sydney, UNSW

This article was originally published on The Conversation. Read the original article.

Advertisements

AUSTRALIA: BUSHFIRES AND FLOODS


Australia is a land of extremes. We have bushfires still burning out of control in Victoria and floods across the country in Queensland, New South Wales, the Northern Territory, South Australia and now in Western Australia as well. Somewhere between 15 and 20 percent of Australia is flood affected, while something like 50 percent of the country is still stricken by drought. Some areas have now been in drought for 11 or 12 years.

Flood waters are now beginning to recede across most of the country; however there is still plenty of rain about – especially in Queensland where an active monsoonal trough is still dumping rain on Queensland.

In Queensland authorities have captured the crocodile that took a 5 year old boy in flood waters. The boy’s remains were found inside of the crocodile. The crocodile is not going to be released back into the wild and will probably be sent to a crocodile farm.

The death toll in Victoria’s bushfire disaster now stands at 209, including a fire-fighter who was killed by a falling tree damaged by the fires. The fire-fighter was from interstate and had gone to Victoria to assist in the crisis. He was due to go home the next day.

The police have stated that the death toll is no longer expected to climb much further than 209.

The official damage bill for in the bushfire areas of Victoria is fast approaching $1 billion Australian dollars and is expected to go beyond that.

Police have now arrested a woman who claimed her father was killed in the bushfires after it was discovered she was not related to the man she claimed was her father. The woman was trying to obtain $10 000 in bushfire relief money.

BELOW: Dramatic video footage as a bushfire approaches a house at Anglesea in the early hours of the morning of the 14th February 2009.

INDIA: PRAYER TEAM BEATEN MERCILESSLY – THEN ARRESTED


Two Christians in Chhattisgarh forced to beat fellow believer unconscious under threat of death.

NEW DELHI, October 13 (Compass Direct News) – The Christian community of Chhattisgarh state is rattled after a gruesome mob attack and torture in Surguja district.

At midnight on Oct. 3 in Dumarbhavna village, 110 kilometers (68 miles) from Premnagar, three jeeps full of Hindu nationalists broke open the door of a house where a three-day prayer meeting was taking place and attacked participants as they slept – ultimately forcing two Christians to beat one of their own prayer partners unconscious under threat of death.

The mob from the Hindu extremist Dharma Sena (Religious Army) beat the participants in the prayer meeting, including women, and dragged three of them from the house of Parmeshwar Beik, dumping them into the jeeps.

“We thought that they were taken to the police station, but instead they were taken to a secluded place where they were beaten all night,” Yahoshu Kujur, pastor of Blessing Church of God, told Compass.

Muneshwar Ekka and Beik were beaten first, and then the Hindu nationalists ordered them to beat the third captured Christian, Ravi Devangan.

“They threatened to kill us if we did not beat Ravi,” Beik told Pastor Kujur. “We were so scared and left with no option, so we beat Ravi until he dropped unconscious.”

After failing to find the three Christians at the local police station the next morning, the pastor found them at the Srinagar Government Hospital, where Devangan was admitted with internal injuries and injuries to his chest, legs and other parts of the body.

“Ravi, who is a driver by profession, was just visiting Parmeshwar from Mehagai village,” Pastor Kujur said. “He was the worst hit, at home and outside during the attack.”

He added that Devangan’s wife witnessed the attack on the house.

 

Police Inaction

Pastor Kujur told Compass that police admitted all three kidnapped Christians to the Srinagar Government Hospital with Devangan in serious condition and the other two in shock.

Beik’s wife also sustained internal injuries during the attack, Pastor Kujur said.

“Mr. Ashok Sahu and four other local Christian leaders went on the morning of Oct. 4 and reported the matter at the police station, but so far no action has been taken,” the pastor said.

Police reportedly deceived local Christians into believing that no complaint would be filed against the prayer team members for “forced conversion” if they would agree not to file any complaints against the Hindu nationalists.

“They told us that they would set the three free if we did that,” Pastor Kujur told Compass.

Instead police registered a case of “forced conversion” against the three Christians under sections 3 and 4 of the Chhattisgarh Dharma Swantantraya Adhiniyam (Chhattisgarh Freedom of Religion Bill).

If convicted, the Christians could be sentenced up to a year in prison and/or pay a fine of up to 5,000 rupees (US$100). They appeared in Surajpur local court on Oct. 6. A fourth Christian, Fakir Chand Toppo, was also falsely implicated, Pastor Kujur said.

At press time all four Christians were in Surajpur jail, though attempts to secure bail for them continued.

 

Political Influence

Pastor Kujur said police officers who are friends of his informed him that police were forced to prosecute the Christians on “orders from above.”

Internal police sources told him, he added, that police in the state were working against Christians under Bharatiya Janata Party (BJP) pressure that has the support of the Chief Minister Raman Singh.

Christians from Surajpur have received news from sources who wish to remain anonymous that, emboldened by the BJP government that rules the state, Hindu nationalists have announced a cash award of 100,000 rupees (US$2,092) to anyone who murders a Christian preacher.

In Premnagar, also in Surguja district, Hindu extremist mobs have mounted similar attacks, Pastor Kujur said. He told Compass that in 2004 a Christian convention was attacked during which a mob surrounded the venue and shouted anti-Christian slogans. Police intervention averted casualties.

In another incident in 2005, Hindu extremists incited villagers of Premnagar to attack local Christians, reportedly wounding many.

The Dharma Sena was relatively unknown until nearly three years ago, emerging suddenly in the central Indian states of Madhya Pradesh and Chhattisgarh.

Attacking Christians throughout the two states, the Hindus extremist group is reportedly backed heavily by the BJP, with BJP leaders pressuring police officials not to register any First Information Reports against it.

It is widely believed that the Dharma Sena is nothing more than the Hindu extremist youth group Bajrang Dal in another form.

Report from Compass Direct News