The Australian Industry Group welcomes the swift action on nuisance tariffs after their identification as an inhibitor to productivity at last week's Economic Reform Roundtable.
"Australia's free trade architecture covers over 80 per cent of our trade, which means that most products already enter the country tariff free. However, to secure that zero tariff requires additional paperwork by Australian importers. Action on these tariff items will provide immediate administrative relief, allowing Australian businesses to allocate resources to more productive activities," said Innes Willox, Chief Executive of the Australian Industry Group.
"Studies show that improving trade administration processes provides the economy with 10 times the benefit of tariff removal, so this action will provide benefits on both fronts.
"The 'nuisance tariffs' name speaks for itself. These charges generated a relatively tiny amount of revenue while at the same time imposing unnecessary compliance costs and time on businesses.
"As Treasurer Jim Chalmers points out, for tyres it raised $80,000 but cost the sector $32 million in compliance.
"The swift action to continue eradicating nuisance tariffs is both timely and welcome with businesses grappling with rapidly changing global trading conditions and significant local cost pressures.
"The Australian Industry Group has previously called for safeguard actions on import surges to be moved from the Productivity Commission to the Anti-Dumping Commission, which is where the expertise and relevant resources already exist. We welcome the Government's decision to facilitate this move.
"This will ensure that Australian industry can have confidence that any untoward increase in imports as a result of the global uncertainty in trade rules will be swiftly identified and action will be taken," Mr Willox said.
