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Government Decision to allow dumping gets balance wrong

Government Decision to allow dumping gets balance wrong

BusinessNZ is disappointed the Government has failed to heed submissions and is allowing goods to be dumped in NZ if it is deemed to be in the “public interest”, via a new public interest test.

Executive Director of Manufacturing, Catherine Beard says New Zealand manufacturers want a level playing field. “We want a vibrant competitive economy. Our manufacturers are globally competitive or they would not still be in business – but we can’t compete against dumped product.”

“It sends the wrong signal to manufacturers in New Zealand that any investment they make in building a business can all be wiped out by dumped product flooding the market and killing off their local business.”

“New Zealand has amongst the lowest tariffs for manufactured goods in the world. We don’t indulge in the various subsidies and government support schemes that can be found in other countries.”

“Anti-dumping cases are often against developing countries. Considering they have a significantly lower cost of manufacturing than in New Zealand (due to scale, lower wage rates, health and safety and other regulatory costs) it is hard to see why they could not compete in the New Zealand market without resorting to selling at below their domestic market rates.”

The question needs to be asked, is price a substitute for quality and if so is the Government going to ensure dumped products meet any quality standards – or will that be left to the public?

ENDS

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