An anti-dumping system exists in Australia to create a level playing field. The system allows Australian manufacturers to apply for anti-dumping or countervailing duties where they believe dumped or subsidised goods being imported into Australia are harming their business.

Dumping is not prohibited or illegal under the World Trade Organisation international agreements, however it is defined as anti-competitive behaviour.

Anti-dumping policy and regulation is important. It provides a trade remedy when imports are dumped and/or subsidised and have:

  • caused or are causing material injury to an Australian industry
  • threatened or would or might cause material injury to an Australian industry
  • materially hindered the establishment of an Australian industry

What is material injury?

Material injury is greater than that likely to occur in the normal ebb and flow of business. It is injury which is not immaterial, insubstantial or insignificant.

The Anti-Dumping Commission assesses material injury to an industry by examining a range of economic factors. These include, but are not limited to:

  • production quantity
  • capacity utilisation
  • stock levels
  • sales value
  • profits
  • return on investment
  • cash flow
  • employees terms and conditions
  • market share
  • ability to raise capital
  • investment

What is dumping?

When a company exports a product to another country at a price below the price charged in the country of manufacture, or below the cost of manufacturing the product, it is known as ‘dumping’ the product.

In 2016, Australia’s only producer of chrome bar, and also an SME, was severely affected by cheap imported chrome bar. Following a robust investigation, the Australian Government took action to level the playing field for its domestic industry. They did this by imposing anti-dumping duties.

What is subsidisation?

Subsidisation is where an exporter benefits from government assistance in the country of export. This benefit allows the exporter to sell the goods to Australia at a lower price, which causes material injury to the Australian industry.

International Trade Remedies Advisory Service

The International Trade Remedies Advisory Service helps Australian small-to-medium enterprises access Australia’s anti-dumping and countervailing system.

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