U.S. Tariff Increases Hit British Wool Export Trade

Press, Volume XCIV, Issue 28089, 3 October 1956, Page 17

U.S. Tariff Increases Hit British Wool Export Trade

(Special Correspondent N.Z.P.A.)

LONDON, Oct. 2. The United States decision to impose higher tariffs on imports on woven wool fabrics when the quota for the last quarter of the year is exceeded, deals a severe blow to the British wool industry’s dollar export drive, says the “Financial Times.’’ The paper says the United States is currently the most important single market for British wool fabrics, taking over one-sixth of the total exports. Exports of wool fabrics from Britain to the United States have increased by 17 per cent, so far this year compared with 1955. “The existing United States quota permits quarterly imports of 3.5 million lb at a tariff rate of 37.5 cents per lb, and 25 per cent, ad valorem. Wool fabrics imported after this quota

is exceeded are subject to 37.5 cents per lb and 45 per cent, ad valorem. “The quota of 3.5 m lb in three months is about the same as average quarterly imports in 1955. The United Kingdom share amounted to almost two-thirds by weight in that year, and an even higher proportion by value. “Competition from Japan has increased rapidly, particularly this year, and the danger of’ a quota system is that plain goods which Japan can rush to the United States market will exhaust much of the quota, leaving the United Kingdom's more seasonal and speciality trade to bear the brunt of higher tariffs. "Consequently it looks as if the advantages of higher exports to the United States from Britain this year will be wiped out”