Why we shouldn't dump our anti-dumping system

Also, during periods of economic recession, global trade is prone to distortion (like dumping). The world has just experienced the worst global recession since the Great Depression in the 1930s. Therefore, it is important to have a system in place that is designed to tackle trade distortion and ensure trade markets remain free and open.

However, while an anti-dumping system should be maintained in Australia it should not be considered a substitute for industrial innovation.

Due to the low margins of commodity products, it is these types of products that would be most susceptible to dumping, and be more likely to be the subject of anti-dumping cases. However, there are reasons, other than dumping, that can affect Australia's ability to produce commodity products at a competitive price. These include Australia's strong economy, high cost of production and high Aussie dollar. Subsequently, it is not always guaranteed that an industry will remain profitable, even with an anti-dumping system in place.

Instead of producing low-margin products, a market in which Australia will struggle to compete, Australian industries should be innovating and adapting to new forms of manufacturing. One new manufacturing practice that could assist Australian industry is known as "unbundling".

"Unbundling" is a process in which parts of a product is manufactured in different parts of the world, as opposed to in one factory. The benefit of this system is that each country develops the part of the product which it is the best at producing. This ensures that the overall product remains cost effective. This technique has already been successfully implemented during the construction of the Boeing 787 Dreamliner aircraft, which had parts produced in the USA, Canada, Korea and Japan.

Finally, trade is always evolving. Products that were profitable do not always continue to be this way, for reasons such as new technological developments. It is because of this that Australian industry must always strive to innovate and develop in order to remain internationally competitive.

And in times when dumping does occur, the anti-dumping system is here to level the playing field.