Cross-currents are emerging in the Abbott Government’s stand on free-trade and entitlement today. While the Coalition Government is frantically seeking to sign so-called free trade agreements (FTAs) with Japan, Korea, and with Pacific Rim nations (via the Trans-Pacific Partnership), and espousing the virtues of free trade to world leaders, it appears to be working behind the scenes to restrict imports into Australia by tightening so called “anti-dumping” laws.
According to a report today in The Australian, the Government is seeking to amend Australia’s anti-dumping laws – which are aimed at precluding imports from being dumped into Australia below their cost – by reversing the onus-of-proof on foreign suppliers, so that they are presumed to be guilty of dumping until presumed innocent:
Industry Minister Ian Macfarlane is working on a package of “anti-dumping” measures that include legislation to reverse the onus of proof on foreign suppliers, speeding up penalties against them…
Trade advocates are opposed to reversing the onus of proof for overseas suppliers that do not co-operate in dumping investigations, seeing it as a form of trade protection because it would assume the companies were guilty…
Mr Macfarlane’s spokeswoman said the government was working to make sure the regime was “as robust and comprehensive as possible”…
Labor attacked the idea of changing the onus of proof when it was in government, warning that it would flout global trade agreements.
The Australian has been told the work is under way separately from a looming decision to penalise tomato importers found to have dumped their products here, in a conclusion by the government’s Anti-Dumping Authority last week.
…In a crucial response, Mr Abbott defended the cabinet decision in yesterday’s party meeting but agreed with Dr Stone’s criticism that the anti-dumping regime was too weak.
…Dr Stone told The Australian late yesterday it was “gratifying” that Mr Macfarlane was now urgently toughening the regime, and she dismissed the fears about retaliation from trading partners.
That doesn’t sound like separate issues to me.
There are problems with assuming foreign suppliers are guilty of dumping in that a larger amount of imports will be blocked, raising prices for consumers. It also goes against standard legal practice in Australia, whereby the accused are presumed to be innocent until proven guilty and could also lead to greater rent-seeking allegations of dumping.
One could also question the politics of the Government providing a back-door bailout to companies like SPC Ardmona while they maintain a tough stance against direct assistance and corporate welfare.
Regardless, with any luck, news of the new legislation will be enough to prevent the firm from closing when it announces its decision next week.
