Anti-dumping fears continue

Hawke's Bay Fruitgrowers Association president Lesley Wilson says while the anti-dumping battle has been won the issue is not yet resolved. Photo / File

Growers are still wary of government plans for anti-dumping rules, despite a recent victory.

Last week they learned their lobbying against anti-dumping measures had resulted in a government U-turn.

The Cabinet had agreed in principle to change the rules which would have resulted in anti-dumping duties only after damage to local industry was proven, with the duties removed after an Automatic Termination Period (ATP).

Dumping, the practice of manufacturers exporting products to another country at a price which is lower than sold for on their domestic market, is illegal under World Trade Organisation agreements.

While the ATP has been shelved, the Government plans to introduce a consumer welfare test into legislation, comparing the impact of dumped goods on a manufacturer with any positive effects on industries and consumers, before duties are imposed.

Last year the Government removed tariffs and duties on building materials, to improve housing affordability.

Hawke's Bay Fruitgrowers Association president Lesley Wilson said growers would make submissions on the proposed law change.

"We welcome competition but we don't want local industries to be destroyed," she said.

The canned peach industry alone is worth an estimated $15 million to the Hawke's Bay economy, with plums and pears also canned.

"Common sense has come through so far and we'll keep moving forward.

"We certainly won't be taking our eye off the ball."

Heinz Wattie's managing director Mike Pretty said the Government's decision to not introduce ATPs saved the industry-threatening destabilisation that would have caused "immense impact" on many livelihoods.

He thanked Tukituki MP Craig Foss for supporting the "staunch" growers' cause.