Butter Dumping

Press, Volume C, Issue 29478, 3 April 1961, Page 10

Butter Dumping

Summed up, the Prime Minister’s account, on his return to this country, of the discussions between New Zealand and a number of other countries about butter dumping amounts to a record of ineffective negotiations over many months during which substantial damage to New Zealand as a fair trader was being done. At his press conference Mr Holyoake referred to the British Government’s earlier approach—in response to representations from New Zealand—to several countries exporting butter to Britain, seeking their cooperation in reducing the dumping of subsidised butter in the British market This followed direct representations by New Zealand to the countries concerned. But dumping continued, contributing to an accumulation of stocks and depressing prices. During January arrivals of butter at British ports were 6000 tons greater than in January, 1960. an increase of 16 per cent. Argentina sent 3500 tons, more than double the 1960 figure; Denmark accused France of dumping 10 times the normal export of butter to Britain. Further representations were made by the British Government to individual countries; and the matter was referred again to the Organisation for European Economic Co-operation (0.E.E.C.). In September a working party of O.E.E.C. on dairy products had recommended measures to effect a better balance between production and consumption of milk products in Europe, and in particular to avoid aggravating the butter supply position in Britain. Mr Holyoake said the question had been referred also to the G.A.T.T. (General Agreement on Tariffs and Trade) Council this month, when New Zealand formally requested the convening of multilateral consultations. The object of these consultations would be to secure the endorsement of O.E.E.C. recom-

mendations in the hope of more effective action. There is no doubt that multilateral agreement offers the best hope of preventing unfair trading in the one free market for dairy products in Europe; but this is likely to take some time. Meanwhile New Zealand is entitled to seek relief under Britain’s antidumping legislation. But Mr Holyoake made it plain that the British Government is reluctant to give New Zealand butter protection under this legislation. He gave two reasons for this reluctance: that action under the antidumping legislation would raise many difficulties for Britain in the context of its relationships with the new European regional groupings; and that Australia might have to be declared a dumping country. Mr Holyoake said he felt obliged to tell British Ministers that, while appreciating these difficulties. New Zealand “ would have “no alternative but to “ consider approaching the “ United Kingdom Govern“ment for action in terms “of their anti-dumping “ legislation ” if other steps to reduce imports of dumped or subsidised butter did not prove effective. It is to be hoped that such action, embarrassing to New Zealand no less than to Britain, will not be necessary. The dairy industry of New Zealand is confident of its ability to serve itself and the nation in fair trading conditions; it is entitled to all the assistance the Government can give it to ensure that it does not have to meet unfair trading conditions.