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| Australia Threatens Legal Action On Mining Contracts |
by Mary Swire, Tax-News.com, Hong Kong
Thursday, February 02, 2012
Australian Prime Minister Julia Gillard has warned that Australia will bring proceedings
at World Trade Organisation level if it is confirmed by industry that Australian
suppliers are unfairly being shut out of lucrative supply deals as has been alleged.
A submission from the Australian Industry Group in response to the Australian
Participation Plan alleged that Australian manufacturers were unjustly prevented
from competing for deals. This, the submission says, is due to clauses said
to often be negotiated into raw material export deals by non-Australian companies
with nations encouraging the use of capital goods and other mining operation
inputs from suppliers in the contractee nation. China was in particular implicated
in the submission.
The AIG also claimed that "in major mining projects, overseas-owned mining
companies often give preference to suppliers from their country or origin".
Gillard said: “Any clear evidence of this will be taken by us to the World
Trade Organisation, because it's in breach of the rules and it's not giving
Aussie manufacturers a fair go. So my message would be to people who have got
this anecdotal evidence that we need to take it to the next stage, to get the
clear evidence and if clear evidence is available then we will certainly do
every thing we can to press the case internationally because it is not fair
to Aussie [interests].”
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