Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Australia's NZ Steel continues campaign against imports

Australia's NZ Steel continues campaign against Chinese imports with third dumping complaint

By Paul McBeth

April 11 (BusinessDesk) - Australian-owned New Zealand Steel is persisting with its campaign to secure greater protection from Chinese imports, lodging its third complaint that dumped foreign-produced goods are undercutting local manufacturers.

The Ministry of Business, Innovation and Employment has started two new investigations into Chinese and Malaysian steel products, the third such probe triggered by BlueScope Steel subsidiary NZ Steel since it first sought an inquiry in 2016. MBIE general manager science, innovation and international Peter Crabtree this week signed off on separate investigations into allegations of Chinese subsidies on certain hollow steel products and claimed dumping of Chinese and Malaysian imports, according to notices published on the New Zealand government's Gazette yesterday.

The ministry has previously rejected NZ Steel's requests to impose duties and other measures on imported galvanised steel coils and steel reinforcing bar and coil from China and Malaysia, finding Chinese government subsidies were too small to hurt domestic producers and that exports from those Asian nations were being dumped locally.

MBIE again agreed there was enough information provided by NZ Steel in its Dec. 6 application warranting an investigation into the new steel product range, noting "significant increase" in the volume of Chinese and Malaysian imports with some undercutting that squeezed the local producer's sales and margins.

However, MBIE said the local producer hadn't faced a "significant decline in market share" that could be put down to dumped or subsidised goods. NZ Steel didn't consider it had suffered reduced capacity or detriments to inventories, employment and wages, or provided evidence of an impact on growth or its ability to raise capital.

NZ Steel estimates Chinese products were dumped at 37.9 percent of the export price in the 2017June quarter and Malaysian products at 50.4 percent in the December quarter.

"NZ Steel considers that the primary factor affecting domestic prices is the price of the unfairly traded imports from China (and Malaysia), which undercut NZ Steel prices, causing price depression and price suppression," the report said. "NZ Steel notes that China and Malaysia have collectively about a 75 percent share of imports, with the next largest share being from Australia" which has "significantly higher" prices than the Asian nations.

On Chinese subsidies, MBIE said "the application largely repeats claims relating to subsidy programmes that have been the subject of previous applications considered and investigated by MBIE," but accepted "there is evidence beyond a mere assertion and of a nature and extent that indicates a likelihood of the existence of subsidisation affecting the subject goods."

NZ Steel's latest application has support from Kiwi-owned Industrial Tube Manufacturing, and New Zealand Tube Mills, owned by Amari Metals. The three firms collectively account for a quarter of New Zealand production of the hollow steel products.

Chinese steel exports have been a bone of contention around the world as US and European producers accused the Asian nation's subsidies and overproduction of undercutting their local industries, and US President Donald Trump imposed new tariffs on steel imports last month as part of his more protectionist trade policy.

NZ Steel has disagreed with MBIE's findings in earlier investigations and has so far asked the High Court for a judicial review of the first rejection.

(BusinessDesk)

ends

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines


HiveMind: Fair Enough? How Should New Zealanders Be Taxed? - Have Your Say

Scoop and PEP invite you to share your issues, ideas and perspectives on the NZ tax system with other New Zealanders using Scoop’s HiveMind tool. This Tax HiveMind is intended to complement and feed into the review being run by the Government-appointed Tax Working Group (TWG), which is looking at the fairness, balance and structure of the tax system with a 10-year time horizon.

We at Scoop and PEP believe that an issue as important as the fairness of the tax regime should be open for discussion, debate and dialogue. Unfortunately, a written submission process just doesn’t encourage the kind of public exchange we think is necessary in a well-functioning democracy. More>>

 

Gordon Campbell: On Thompson + Clark & Russia’s World Cup

Daily, the coalition government keeps running into examples of the toxic legacy left behind by National – and just as regularly, even the simple fixes are proving stubbornly difficult to enact. Take the case of the security firm Thompson + Clark ... More>>

ALSO:

Gordon Campbell: On The GCSB’s Security Hang-Up With Russia

So our GCSB has chimed in, alongside its British, Australian and US allies, with warnings about a “fresh wave” of Russian cyber attacks, although the warning has been curiously framed. More>>

ALSO:

PM's Europe Trip: CHOGM & Bilateral Meetings

Prime Minister Jacinda Ardern is in urope for the Commonwealth Heads of Government Meeting (CHOGM) in London and meetings with counterparts in Paris and Berlin. More>>

ALSO:

Hit And Run: AG Gives Approval For Inquiry

Attorney-General David Parker has today announced a Government Inquiry will be held into Operation Burnham and related events. The operation undertaken in Tirgiran Valley, Afghanistan, ... More>>

ALSO:

Addressing Climate Change: No New Offshore Exploration Permits

The Coalition Government is taking an important step to address climate change and create a clean, green and sustainable future for New Zealand, Prime Minister Jacinda Ardern announced today. More>>

ALSO:

Road Safety Summit: Actions To Improve Identified

The Local Government Road Safety Summit held last week identified actions that will lead to lasting changes to road safety in New Zealand, says Associate Transport Minister Julie Anne Genter. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages