BRITISH DUMPING LAWS

Press, Volume XCVII, Issue 28514, 18 February 1958, Page 12

BRITISH DUMPING LAWS

N.Z. Seeks Protection For Butter (New Zealand Press Association) WELLINGTON, February 17. The New Zealand Government tonight lodged with the Board of Trade in London an application to have anti-dumping or countervailing duties imposed on butter imported into the United Kingdom from certain countries. This was announced by the Minister of Agriculture (Mr Skinner), who said that the dairy industry had been fully consulted and was 100 per cent, behind the Government’s action.

In taking this action, the Government is following the advice given by the British Prime Minister (Mr Harold Macmillan) when he was in Wellington. Mr Macmillan told a press conference last month that New Zealand could probably make out a sound case for the British Government to invoke the dumping laws to give “reasonable” protection to the Dominion’s interests on the British market. At the time, Mr Macmillan said that the dumping laws made it possible for the British Government to deal with any dumping on the United Kingdom market.

“For some time,” said Mr Skinner, “the Government has been very disturbed at the effects on the butter market of supplies from a number of countries which are not regular suppliers of butter to the United Kingdom; and in some of which the dairy industry is heavily subsidised. “For example, in 1957, Finland exported 20,218 tons of butter to the United Kingdom compared with 9389 tons in 1956, and practically nothing in 1955. “The Irish Republic supplied 14,473 tons in 1957, compared with 283 in 1956, and 1035 tons in 1955.

“Sweden supplied 14,082 tons in 1957, compared with 1417 tons in 1956 and none in 1955.

“Argentina supplied 12,344 tons for the first 11 months of 1957, compared with 10,316 tons in 1956 and 7306 tons in 1955.

“Supplies of butter from these four countries total over 60,000 tons in 1957,” he said. “With total imports of just over 300,000 tons and a local production of about 30,000 tons, the quantities in question must be one of the principal causes of the serious fall in prices which has occurred in recent months. “Strong Case”

“We feel that we have a strong case,” said Mr Skinner. “The level of wholesale prices in these European countries is far above the prices they receive on the United Kingdom market. For example, the wholesale price of butter in the Irish Republic is approximately 430 s per cwt., in Finland 600 s, and in Sweden 5155. “This produce is placed on the United Kingdom market, at about 240 s per cwt.” The Minister said that the Customs Duties (Dumping and Subsidies) Act became law in the United Kingdom last year. Under the legislation, special customs duties may be imposed if goods, are being dumped on the United Kingdom market—sold at less than domestic prices in the country of origin or subsidised by the exporting country. In the former case an anti-dumping duty can be imposed, and in the latter a countervailing duty equivalent to the extent of the subsidy. “Anti-dumping duties.” said Mr Skinner, “have already been imposed by the United Kingdom in a number of cases, the latest being on silicon imported from France. “In these cases, however, the legislation was invoked to protect a domestic industry in the United Kingdom. The act also allows a third country, for example New Zealand, to apply for relief. In such a case, before anti-dumping or countervailing duties can be imposed, the approval of the contracting parties to the General Agreement on Tariffs and Trade is necessary where the countries concerned are also G.A.T.T. members. There is provision, however, for the immediate imposition of countervailing duties in an emergency in anticipation of subsequent G.A.T.T. approval.” National Interest Mr Skinner said that an important provision in the legislation was that the Board of Trade had to consider that the imposition of anti-dumping or countervailing duties was in the national interest of the United Kingdom. Thus, while there was little doubt that the greater part of the 60,000 tons of butter from marginal suppliers

last year was dumped in terms of the act, it remained necessary to convince the United Kingdom authorities that it was in their national interest to involve the legislation. The Minister said that from New Zealand’s point of view there was not much doubt that the Dominion’s ability to buy from the United Kingdom was gravely impaired by the heavy fall in butter prices. He believed that* a contraction of mutual trade was certainly contrary to the national interests of both countries.

New Zealand would press strongly to have the legislation invoked because one of the main causes of the serious situation of New Zealand’s balance of payments was the fall in butter and cheese prices over the last six to nine months, said Mr Skinner.