Australian Paper is being disadvantaged by new revelations that dumped A4 copy paper imports sell for up to a third cheaper than the local brand, initial findings of a federal investigation show.
The Anti-Dumping Commission, acting on complaints from Australian Paper, has shown that the dumping margin could be as much as 34 per cent, according to a report in timberbiz, an online forestry news outlet.
The commission defines dumping as “when goods exported to Australia are priced lower than their ‘normal value’, which is usually the comparable price in the ordinary course of trade in the exporter’s domestic market”.
Dumping is classified as an unfair trade practice that can destroy local manufacturing industries.
The Gippsland forestry supply chain delivers more than 750,000 cubic metres of hardwood per year to Australian Paper, which manufactures copy paper and other office papers.
After receiving an application from Australian Paper, the Anti-Dumping Commission conducted its initial investigation into allegations of dumping from Austria, Finland, Korea, Russia and Slovakia.
The commission has just published its consideration report – an initial formal report available on the public record.
The commission’s estimated dumping margins for each of the importing countries were in some cases “substantial”, timberbiz reported.
These were Austria 21.6 per cent, Finland 16.9 per cent, Korea 34.2 per cent, Russia 4.2 per cent and Slovakia 17.4 per cent.
Timberbiz quoted forestry consultant Industry Edge, which reported the new claims were hot on the heels of the successful 2017 case that found copy paper from Brazil, China, Indonesia and Thailand had been dumped in Australia.
“It is no surprise there is more anti-dumping action coming on copy paper. After last year’s decision by the ADC, any hint of dumping from other countries was always going straight back to it,” Industry Edge said.
“Very low-priced copy paper import have made it difficult for Australian Paper to provide price leadership, despite the rising price of pulp across the world.”
Timberbiz said a dumping margin of 34 per cent could mean, for example, that when sold in Australia, the product is much lower prices than in the importing country’s home market.
Under the rules of the World Trade Organisation – and Australian law – dumping is illegal, and stiff penalties and extra duties can be imposed on those found to be dumping.
“Matters involving dumping allegations are complex trade matters, typically taking months and even years to resolve,” Industry Edge said.
The current case is expected to take until August to be resolved.
