Australia's federal government is facing increasing pressure to revoke a special trade deal that allows Chinese companies access to the country market. Australia's big steel and aluminum manufacturers like Bluescope, Arrium and Capral are said to be among the companies heaping pressure on the government in light of Chinese steel and aluminum dumping.

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Australian companies are reportedly finding it increasingly difficult to compete with cheap Chinese steel and aluminum imports. A recent study by the McKell Institute, a progressive think tank, revealed that Australia's decision to grant "market economic status" to China has backfired and local companies are being severely damaged by China's incessant steel dumping at below the market price.

Australian Workers Union National Secretary Scott McDine supported McKell Institute's observations in a recent interview on ABC's AM program. "We've got Darling Harbour and the convention centre. There is not one scrap in that whole construction of Australian steel. That is Chinese and Korean steel," he said.

He demanded that Chinese companies must not be allowed to dump products without paying appropriate duties.

Tony Dragicevich, managing director of Capral Aluminium, also complained about Chinese steel dumping while speaking to ABC. He claims that over the past decade, Chinese companies have gobbled up 40 percent of the local market.

"It's made life extremely difficult. We've had to lay off a number of people over the years, we've had to close a factory and our employee numbers have reduced significantly," Dragicevich said.

He revealed that Capral Aluminium has been unable to pay dividends to its shareholders for the past 13 years and this has made it difficult to raise capital to expand their business.

Meanwhile, the Australian government has come voiced support for local manufacturers, saying that it would take the necessary steps to cope with the problem of Chinese steel dumping.  

"The Australian Government is committed to a strong anti-dumping regime to ensure our manufacturers and producers can compete against imports on a level playing field," a spokesperson for the Australian Department of Foreign Affairs and Trade said.

The spokesperson added that investigations into the products allegedly dumped by Chinese companies are being carried out on a case-by-case basis by Australia's anti-dumping commission.  

TagsAustralia, china, Chinese Steel Dumping, Anti Chinese Dumping