Government to investigate paper ‘dumping’

Australian Paper’s campaign against cheap paper imports has ramped up, with the Federal Government announcing an investigation into the alleged ‘dumping’ of Chinese product into the local market.

Last week the Commonwealth’s Anti-Dumping Commission announced it would investigate the importation of A4 and A3 copy paper undercutting Australia market prices, in response to a formal application from Australian Paper.

‘Dumping’ is the international practice of mass producing a product before exporting it into overseas markets in large quantities at a low prices, effectively undercutting local producers.

While Australian Paper chief executive Jim Henneberry said the company had successfully competed against imported sources for many years, market pricing had reached such low levels its Maryvale operation was being placed in jeopardy.

“Paper manufacturing is a capital intensive industry. Australian jobs and the future of the local industry are under threat from low market prices and we welcome the ADC’s decision to investigate this important issue,” Mr Henneberry said.

Federal Member for Gippsland Darren Chester has been lobbying against cheap paper imports alongside the Construction Forestry Mining and Energy Union over the past 18 months.

He said AP’s anti-dumping application alleged the goods had been imported into Australia at prices less than their normal value and the dumping had caused material injury to the Australian industry.