The Productivity Commission has cautioned the Albanese government against using its signature industry support program to create supply chain resilience, warning that it could be seen as a form of trade protectionism.
In its annual Trade and Assistance Review on Tuesday, the government research and advisory body argued that using the Future Made in Australia agenda to minimise supply chain disruptions would require “careful strategy”.
It said that deploying billions of dollars in ‘behind the border’ assistance, most of which comes in the form of tax breaks, could “simply shift a vulnerability rather than reduce it”.
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