Government to add consumer welfare test on anti-dumping law
By Joshua Riddiford
Aug. 27 (BusinessDesk) - The government will introduce a new consumer welfare test to anti-dumping laws which it says will balance the interests of end-users with those of local manufacturers.
Commerce and Consumer Affairs Minister Paul Goldsmith said the test will be written into legislation which will be tabled in Parliament later this year. The test will weigh up the impact dumped goods have on a manufacturer against the wider effects on industries and consumers, before duties are imposed.
“We want to ensure that we have a competitive market where consumers get the best value for their money. These decisions aim to strike a balance between encouraging competition, while protecting manufacturers from dumping.” Goldsmith said.
Dumping is the practice of manufacturers exporting products to another country at a price which is lower than the price at which they are sold in their domestic market.
A duty or financial penalty is imposed on those dumped products considered to harm New Zealand manufacturers or a local industry.
Goldsmith said the government considered introducing an automatic termination period (ATP) on anti-dumping duties, but shelved the proposal after representatives from the Hawkes Bay fruit growers industry lobbied against the measure.
"After taking into account feedback from the growers and further analysis from officials, the government has decided that there will not be an ATP provision included in these changes," he said.
Last year the government announced the removal of tariffs and duties on building materials covered under existing legislation with the intention of improving housing affordability.