The timber industry has welcomed an investigation into the alleged dumping of Chinese office paper in the Australian market. Source: ABC Rural
The Federal Government’s Anti- Dumping Commission will look into whether paper has been sold in Australia at prices below what it would fetch in China.
Ross Hampton, of the Australian Forest Products Association said there’s been a surge of cheap Chinese paper being sold in Australia over the past 18 months and it’s affecting local paper production.
“The industry has no beef with importers. We have to compete on our own two feet and on our own merit,” Hampton said.
“But what the World Trade Organisation recognises, and what Australian law recognises, is that it’s not a level playing field if a country over-produces a commodity and then simply tries to get rid of it in another market at below its sale price in its own country.
“That’s called dumping and that’s the allegation here.”
Victorian-based Australian Paper, which is owned by the Nippon Paper Group, is the only local producer of office paper.
The company’s CEO Jim Henneberry said cheap imports are already hurting the business.
“It’s certainly put tremendous stress on our company and we are big players. Our reach is 6000 jobs and we are really in key rural areas.
“If this would continue, this trend, then we would have to be looking at some restructuring.”
Henneberry said the company’s wood sourcing is based on long-term contracts for off-cuts from sawmills.
“If we have to restructure, if we have to do something radically different, than that significantly impacts that supply chain.
“If we were not able to take that type of wood, then it would have a significant rollon impact for a lot of the regional communities.”
The Anti-Dumping Commission will accept submissions for the investigation until November 19 and expects to deliver a report next year.
