MELINDA JAMES, HOST: Australia is going to slap an 82% tariff on imported Chinese steel. It's probably the outside realm of what Australia's done in response to the dumping of cheap steel in the past. So, why this response and what will it mean for Bluescope? This is aimed at the type of steel that Bluescope produces, the only producer of this type of hot rolled coil steel in Australia of course. The Minister responsible is Senator Tim Ayres, the Federal Minister for Industry and Innovation and he's been good enough to give me some of his time this morning. Tim Ayres, good morning.

SENATOR TIM AYRES, MINISTER FOR INDUSTRY AND INNOVATION, MINISTER FOR SCIENCE: G'day. Really good to be on the show. And good morning to your listeners.

HOST: This has a long genesis – a long time ago, doesn't it. We're talking way back I think, was it, late in 2024 when this first was drawn to your attention by Bluescope when they made an application to the Anti-Dumping Commission. So, what's happened between then and now, and your decision this week put that tariff on Chinese steel?

AYRES: It's really important to say this is an evidence-based process that the Anti-Dumping Commission works through here. The Anti-Dumping Commission is Australia's mechanism to make sure that while we are absolutely for free trade and the rules-based international system, that is what is in Australia's interest. We're also for fair trade and the Anti-Dumping Commission makes sure that Australian manufacturers are on a level playing by using an evidence-based process. And it only activates these processes when it establishes that dumping is occurring. That's what's happened here.

HOST: What does define dumping occurring? Is it still well below the price of manufacturing? Well below market price? How is it defined?

AYRES: Yeah, all of those kinds of considerations drive a finding that dumping is occurring. Where it's produced and delivered into a market where it's lower than the cost it's been produced for. There are all sorts of evidentiary thresholds. It's quite a difficult process for manufacturers to go through. There have been increasing applications for anti-dumping orders as of course the global trade environment has got more volatile and there is more chaotic behaviour. More dumping behaviour going on means that there's more applications and more applications being granted. This is a significant application. It does mean that that Bluescope Steel and the workers who work for Bluescope Steel can be more confident that their steel production is on a level playing field with the rest of the world.

HOST: How do you arrive at this 82% tariff that seems quite high compared to punitive tariffs that have been slapped on goods before. So, 82%, how did you arrive at that figure?

AYRES: Well, it's really important for your listeners to understand this is not just a process that I work through as a Minister to arrive at a level of duty. That is something that is an evidence-based process that the Anti-Dumping Commissioner and the Anti-Dumping Commission assess and so they work through a set of evidentiary thresholds. There is very deep research that goes on and then they reach a conclusion that they recommend to me.

Now we took steps ahead of the last election to strengthen the Anti-Dumping Commission to make sure that it had the powers that it needs and that it's fit for purpose in what is a tougher global environment. Where there's more breaches of the international trade rules, where countries are imposing trade barriers right around the world and that is having a knock-on effect. And we are determined, the Albanese Government, to make sure while we are for international trade, like Australia is a trading nation, one in four of our jobs rely upon exports. Our best jobs. The more your firm is engaged in exports, the more likely you are to be in a good job with higher wages. So, we rely upon exports and trade. It's also important that it's fair trade and that we're on a level playing field and that's what the Anti-Dumping Commission is there to do. And that means in this case supporting local steel manufacturers like Bluescope to make sure that they are on a fair and level playing field.

HOST: Very good for Bluescope and I'm sure Bluescope is very happy about this having lodged the complaint initially and saying that they were being materially affected by this dumping of cheap Chinese steel. But we have a lot of steel fabricators who turn steel into a product downstream who've been getting access to very cheap steel for a couple of years now and will no longer be able to. I'm not suggesting that anything should be done differently because of them. But that is an issue, isn't it?

AYRES: Well, it's a mixed story in steel fabrication. I think most Wollongong steel fabricators probably feel very strongly, like I do, that they should support the Australian steel industry. And the steel fabrication sector itself is open to imports and there are imports there.

So, it's important that we work together across industry to strengthen our industrial capability. That's what the Albanese Government's Future Made in Australia agenda is all about. Of course, the Anti-Dumping Commission plays its role, it's evidence-based role but we've stepped in and intervened in a very decisive way to make sure that we're rebuilding Australian manufacturing, that we're positioning a future economy that's stronger for Australia, that's got more manufacturing in it. I've been working hard across the manufacturing sector to deliver that. The largest ever pro-manufacturing policy package in Australian history. We've got lots of work to do. Yesterday's intervention on gas was an absolutely decisive intervention, very important for Australian manufacturing including Bluescope and other heavy industry in the Illawarra.

HOST: Tim Ayres just very, very briefly before I let you go. Have you had a response from China?

AYRES: I would expect that you know our anti-dumping regime applies to all countries equally. It's an evidence-based process. Each country has its own process to deal with these. I'm very confident in our process.

HOST: I really appreciate your time this morning. Thank you very much.

AYRES: Thanks very much.

HOST: Senator Tim Ayres, the Federal Minister for Industry and Innovation.