BlueScope chief Paul O’Malley is in favour of Australia’s free trade agreement with China, but admits the country’s anti-dumping measures need to work more quickly.
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One of the steelmaker’s biggest problems is the large amounts of steel dumped by China in the world market, at prices it simply can’t match.
Earlier this week, the South African government imposed a 10 per cent tariff on steel imports from China, and Illawarra unions have called on the federal government to implement emergency measures to stop illegal steel dumping here.
‘‘We have bipartisan support for a good anti-dumping regime,’’ Mr O’Malley said, when asked if he’d like to see a similar tariff introduced in Australia.
‘‘During the China FTA negotiations, that was entrenched ... which was a good outcome. Sometimes I think we need our anti-dumping measures to work more quickly than they do, but the regime in place in Australia is a good regime.’’
Construction, Forestry, Mining and Energy Union national secretary Michael O’Connor told the Mercury last week the FTA with China had ‘‘given away our sovereignty’’ to protect Australian-based industries’’.
He labelled the trade agreement, signed on June 17, a ‘‘dud deal’’ that would make steel imports cheaper, but Mr O’Malley was supportive of the move.
‘‘Chinese steel can come into Australia in a reasonably tariff-free manner so we’ve been competing against that for years, the free trade agreement locks in our anti-dumping rules and rights,’’ he said.
Mr O’Malley praised Minister for Trade and Investment Andrew Robb for ‘‘holding very firm’’ with the anti-dumping regime.
‘‘We’ve been able to demonstrate how it’s possible to be successful in China. If the free trade agreement improves the access of Australian businesses to China, I think the Australian economy will grow and BlueScope will grow with it,’’ he said.
‘‘I’m a fan of the free trade agreement and I actually think it’s better for our economy we support it ... we’re happy to compete with Chinese product but we’ll do that on a cost-competitive basis.’’
Earlier this week, BlueScope announced it had two options for the future of its Port Kembla steelworks – cut $200 million and 500 jobs or shut it down.