Do Australia needs anti-dumping laws?

Top of the list was a promise to strengthen Australia’s anti-dumping system to shield industries such as steel, aluminium, and manufacturing from unfair competition.

Donald Trump’s sweeping new tariffs have thrown global markets into disarray and left even residents of Norfolk Island puzzled. Around the world, politicians, economists, and ordinary citizens are scrambling to make sense of the situation and what might come next.

While countries like Canada, those in Europe, and China have responded with strong statements, Australia’s reaction has been noticeably more restrained.

This indicates two things. First, Australia doesn’t export a large volume of goods to the US, and there’s general agreement that retaliating could end up being more harmful than helpful.

Second, the 10% tariff on Australian exports to the US – which excludes pharmaceuticals for now – is relatively moderate, meaning Australia has come off fairly unscathed.

Nonetheless, political leaders know they need to act. On Thursday, Prime Minister Anthony Albanese swiftly unveiled several measures aimed at protecting local exporters who could be affected – directly or indirectly – by the US’s trade actions.

The concern is that countries like China and Vietnam, now facing steep US tariffs, may reroute their goods and sell them at below-market prices in alternative markets like Australia. This practice, known as “dumping,” could undercut Australian manufacturers and potentially force some out of business.

A sudden influx of ultra-cheap imports doesn’t seem imminent. Still, it’s hard to gauge the real level of threat, though the chances of seeing more dumping cases are definitely higher than they were just days ago.

At this point, most of the government’s anti-dumping talk remains just that – talk. In the background, diplomats and trade officials are working with international partners to prevent a rush of unwanted goods flooding each other’s markets.

The government has allocated an additional $5 million to enhance the Anti-Dumping Commission’s ability to handle a possible surge in complaints.

The commission, part of the Department of Industry, investigates when local producers claim they’re being harmed by unfairly priced foreign imports.

However, if there’s no local producer being negatively impacted, dumping doesn’t apply.

Take electric vehicles, for instance: if China were to flood the Australian market with cheap EVs, the absence of local carmakers would simply mean more affordable cars for consumers – not a dumping issue.

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