According to the ASI, the proposed TRQ system would allow imports up to a specified quota level to enter duty free, while tariffs would apply only to volumes exceeding that threshold. The institute emphasized that the aim is not to block imports entirely, but to keep them at levels that wouldn't place excessive pressure on domestic producers.
The institute argued that the proposed measure would have only a limited impact on project costs. It stated that imported structural steel accounts for a relatively small share of the total cost of infrastructure and mining projects, and that only a portion of those imports would be subject to tariffs. As a result, the cost impact on end users is expected to remain limited.
The ASI also stated that the TRQ would provide significant benefits to the sector. According to the institute, the proposed mechanism has the potential to reduce approximately half of the injury currently faced by the industry. This would give producers greater confidence to invest in capacity and productivity improvement projects, helping strengthen their long term competitiveness.
The statement also noted that, under international safeguard rules, the TRQ would be subject to annual reviews and progressive liberalization. The ASI added that these reviews should also take into account trade measures applied to structural steel products globally, in order to prevent Australia from becoming a destination for trade diversion.
The institute concluded that the proposed TRQ is a targeted and proportionate solution to a well documented problem, and called on the Productivity Commission to recommend its implementation.
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