Continuing the import of cheap building products into Australia risks destabilising the construction market and will force local companies to go out of business, says Building Products Industry Council (BPIC).

The warning comes amidst debate over proposed anti-dumping duties on low-priced imported building products, including glass windows and doors. Rejecting assertions by the Master Builders Association (MBA) that such measures would drive up housing costs, the peak industry body argues that anti-dumping duties are only imposed when it’s confirmed the imported products are sold below their normal overseas value.

Observing that anti-dumping duties restore fair competition in the local market, BPIC Executive Officer Rodger Hills says, “They don’t push prices up – they help to buffer the Australian construction sector from overseas interests intent on destroying the local market.”

Concerns about dumped imports were reflected in more than 400 submissions lodged by manufacturers, unions and industry groups as part of a recent Anti-Dumping Commission investigation into imported glass products. According to BPIC, these submissions highlight widespread unease about the real-world impacts of foreign-subsidised building products on local jobs, investment and supply chain stability.

“These concerns are not speculative,” Hills adds.

The consequences of dumping are already evident, with domestic manufacturers struggling to compete in distorted market conditions. Australia's building product sector directly employs 243,300 people and a further 796,500 indirectly. About 262,000 firms make up the sector and manufacturing, fabrication and installation activity accounts for $67.3 billion in economic activity. “Spurious claims that domestic manufacturing capability is lacking, with the gap needing to be filled by cheap dumped products, puts all those jobs and businesses at risk," he observes.

Addressing concerns about rising construction costs, Hills argues that post-pandemic price increases have been driven largely by inflation, global uncertainty and supply disruptions, rather than the enforcement of WTO-compliant trade rules. If left unchecked, dumping could amplify price volatility by weakening local producers and ceding control of product supply chains and pricing to overseas interests.

"Australia cannot deliver 1.2 million new homes based on a foundation of distorted markets and collapsing domestic production capability. A resilient construction sector requires a fair and level playing field with both competitive imports and strong local manufacturing; something impossible without enforcing anti-dumping laws," he concludes.

Image source: https://www.agwa.com.au/

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