BUSINESS and political heavyweights have called on the federal government to reform Australia's anti-dumping laws in a bid to stop foreign companies from flooding the market with cheap goods.

Chief executives from some of Australia's largest manufacturers joined national trade union leaders and independent federal politicians Nick Xenophon and Bob Katter at an anti-dumping roundtable yesterday to warn of the threat to manufacturing.

''This is an issue which unfortunately hasn't got the coverage that it deserves,'' Australian Workers Union national secretary Paul Howes said.   


''Foreign governments are deliberately trying to manipulate the market to wipe out domestic production [in Australia].''    

Illegal dumping occurs when heavily subsidised goods exported to Australia are sold for less than they cost to produce in their country of origin. Such goods threaten the viability of the manufacturing sector because companies struggle to compete with the lower prices.

Those affected include aluminium, steel, glass and forest products manufacturers.

Under World Trade Organisation rules, WTO members cannot cause, or threaten to cause, injury to foreign suppliers of similar goods. The organisation's Anti-Dumping Agreement and its Subsidies and Countervailing Measures Agreement give members the right to take action against injurious dumping and subsidisation.

Chief executives from Gunns, Kimberly-Clark Australia, OneSteel and Australian Paper, were among those calling for reform. Gunns CEO Greg L'Estrange said illegal dumping had a huge impact on manufacturers.

''Look at the increase in imports over the last three or four years . . . we're importing more finished product in our softwood products, and we're exporting more logs. So we're actually taking all the value-added [potential] and giving it to someone else. That doesn't make sense,'' he said.

Kimberly-Clark Australia general manager Milo Foster said: ''In 2008 we filed an anti-dumping action … against competitors in Indonesia and China … here we are, three years after we filed the initial case. There's no dispute that dumping has indeed taken place, but our offshore competitors have had no penalties against them and they're free to do as they wish.''