The Australian steel industry has sought emergency trade relief measures to address a surge in low-priced imported fabricated steelwork threatening the local industry.
The Australian Steel Institute (ASI) on behalf of the industry has lodged a Safeguard application with the Federal Government requesting it apply temporary emergency provisions to protect the industry. This application presents a comprehensive case for emergency trade relief measures to address a crisis of import penetration that has fundamentally altered the competitive landscape for Australian steel fabricators.
ASI chief executive Mark Cain says the Australian fabricated structural steel industry stands at a critical juncture, facing an unprecedented surge in imports that threatens the viability of domestic manufacturing capacity built over decades.
Due to its vulnerable state, the Australian fabrication industry also faces a threat of suffering further serious injury, which will, if not countered, ultimately result in the full loss of sovereign manufacturing capability.
The ASI has been advised that more than a dozen steel fabrication businesses have closed in the western Sydney area alone in the past 18 months, with the majority of closures due to the dire impact of competing against very low-priced fabricated structural steel imports. It is estimated that the national impact is at least three to four times greater than this.
Safeguard measures are defined as “emergency” actions under a World Trade Organisation (WTO) agreement where a “surge” of imports causes or threatens to cause, serious material injury to a domestic industry and allow a country to respond to unforeseen increased imports which have caused serious material injury. Based on an analysis that covers not only the interests of domestic producers, but also users, importers, and the broader economy, the Safeguard measure would serve compelling national interests.
Economic modelling shows that the imposition of Safeguard measures will result in a net increase of productivity for Australian industry by preserving essential manufacturing capability, protecting employment, and maintaining competitive market conditions while minimising adverse effects on other stakeholders through careful measured design and implementation.