Final Report: Termination of Third Country Dumping Investigation: Primary Carpet Backing Fabric from Saudi Arabia.

On 29 March 2000, the Ministry initiated an investigation into the alleged dumping of primary carpet backing fabric from Saudi Arabia. Primary carpet backing fabric is a woven polypropylene fabric into which the carpet yarn is tufted to make carpet.

An application for an investigation was made by the Australian Government on behalf of Amoco Chemicals Pty Ltd. (Amoco), which constitutes the Australian industry producing primary carpet backing fabric. Amoco supplies primary carpet backing fabric to the New Zealand market and alleged that dumped primary carpet backing fabric from Saudi Arabia was being dumped into New Zealand thereby causing it material injury.

An application for a third country dumping investigation involves an industry in a third country (in this case Australia) alleging that goods imported into New Zealand are being dumped and as a result material injury to an industry in that third country has been or is being caused or is threatened. Third country dumping investigations are provided for in section 18 of the Dumping and Countervailing Duties Act.

The investigation to date has found that the Saudi Arabian imports are being dumped, that the Australian industry is being injured, but that material injury to the Australian industry is not being caused or threatened by dumped imports.

The investigation also found that there were other causes of injury, the most significant being price undercutting from non-dumped imports. On a weighted average basis, price undercutting ranged from __ to __ percent, of which dumping accounted for 3 to 4 percentage points. In addition, the dumped imports accounted for only _ percent of the total Australia-New Zealand market volume.

The Ministry released a draft report of its findings to interested parties for comment. Although Amoco had some comments on this draft, it also notified us in writing that it was withdrawing its application. A copy of Amoco’s note is attached.

Section 11(1) of the Dumping and Countervailing Duties Act provides as follows:

The withdrawal of the application in writing by Amoco meets the criteria for the termination of the investigation in section 11(1) of the Act, and the Minister is therefore required to terminate the investigation.

It is recommended that, pursuant to section 11(1) of the Act, you terminate the investigation and sign the attached Gazette notice notifying the termination of the investigation.