Concerns over changes to dumping law

Lesley Wilson says New Zealand growers are already battling higher production costs. Photo / NZME

Fears for canned fruit and vegetable industry if Government’s proposed loosening of regime is signed off.

Heinz Wattie and Hawkes Bay fruitgrowers have lined up against what they say would be a relaxation of New Zealand's anti-dumping regime if Government proposals go ahead.

A Government discussion paper, the consultation period for which ended last Friday, proposed an automatic termination period (ATP) for its anti-dumping and countervailing duties.

Under the proposal, a public interest test would allow competition and consumer welfare elements to be considered before an anti-dumping or countervailing duty was imposed.

An ATP would provide for the automatic termination of a duty after a set time had elapsed.

A public interest test would allow competition and consumer welfare elements to be considered before an anti-dumping or countervailing duty is imposed.

The measures would introduce competition and consumer welfare elements when a decision was made to impose duties and encourage domestic industry to use the limited period when duties were in place to adjust to expected future competition from dumped goods, the paper said.

As it stands, duties are imposed over a maximum five-year time span, after which industries are entitled to apply for a continuation for another period of up to five more years.

Heinz Wattie, which has hired public and employment law firm Chen Palmer to advise it on the issue, said it was concerned for its growers if cheaper product was allowed unfettered access to New Zealand markets.

"We are concerned about our growers and the impact that it might have on them, because it [ATP] is a proposal that, if implemented, nobody could survive," Heinz Wattie's chief executive, Mike Pretty,said.

"The law does not need changing because the tools are already there."

Hawkes Bay Fruitgrowers' Association president Lesley Wilson said the association, which supported Heinz Wattie's submission, was not against competition, "but we are against dumping".

"Growers are already battling with a higher cost of production due to increased compliance costs," she said. New Zealand growers had labour laws, the minimum wage, WorkSafe NZ requirements and quality assurance programmes to adhere to.

"We are all proud of these systems and processes, but not every country in the world has them, so they have an advantage over us in terms of production costs," she said.

"While competition is welcomed, we don't want to see New Zealand become a dumping ground for excess product from overseas."

The discussion paper outlined proposals for introducing a "bounded public interest test" into the New Zealand anti-dumping regime.

The discussion paper was part of a range of measures to improve productivity and competition in the construction sector by removing import barriers. It followed the removal of duties and tariffs on imported building materials announced as part of the 2014 Budget.

The Cabinet has agreed in principle to introduce a bounded public interest test into New Zealand's anti-dumping and countervailing duties regime.

Heinz Wattie, in its submission, outlined the fears of peach growers and said the canned fruit and vegetable industry was an example of where material injury might occur to New Zealand if an ATP was introduced.