The Press SATURDAY, SEPTEMBER 2, 1961. Butter Dumping

Press, Volume C, Issue 29608, 2 September 1961, Page 10

The Press SATURDAY, SEPTEMBER 2, 1961. Butter Dumping

New Zealand will welcome the British Government’s decision to submit to the contracting parties of the General Agreement on Tariffs and Trade (G.A.T.T.) its conclusions that a prima facie case exists for examining New Zealand’s and Denmark’s complaints about butter dumping. Both countries would have been happier had the British Government seen its way to taking action forthwith under Britain’s own antidumping legislation. But the British Government contends that its obligations to G.A.T.T. require it to act through that organisation, even though there can be little question that the nations against which complaints are made are wittingly contravening the principles of fair trading upon which the G.A.T.T. agreement insists. Reference of the issue to G.A.T.T. me’ns further delay before anything can be done to stop or reduce the dumping of butter on the British market—a matter of concern to this country while it is losing £170,000 a'week. The threatened appearance of another “ dumper ” on the British market must increase New Zealand’s sense of urgency. A London report says that because of greatly increased production in a favourable season South Africa will send to London, at great loss, about 10,000 tons of butter and 2000 tons of cheese. But impatience in this country for a decision (after more than a year of representations and negotiations) should not obscure sight of Britain’s difficulties in this matter. Britain cannot be eager to retreat from its principles of economic liberalism and expanding world trade, especially at a time when it is struggling

to secure a wider adherence to these principles in Europe and elsewhere. Moreover the British Government has strong economic and political reasons to resist anything that would raise the cost of living at home—especially now, when restraint is being urged upon the trade unions. /

When everything is taken into account, Britain maj’ be said to have been punctilious in dealing with the New Zealand and Danish complaints. Since the new application to G.A.T.T. will be at the instance of Britain, it will carry considerably more weight than the abortive application last April, which was at the instance of New Zealand. The Board of Trade’s announcement expresses the British Government’s “expectation” that at the G.A.T.T. meeting agreement will be reached about •“ the immediate “ adoption ” of measures to reduce the quantities of “ dumped or subsidised “ butter ” offered for import into Britain. Agreement along these lines is probably the most that can be expected from G.A.T.T. because, as the Board of Trade’s statement shows, G.A.T.T. requires the approval of the contracting parties for the imposition of anti-dumping or counteravailing duties for the purpose of offsetting dumping or subsidisation. Since this appears to mean that the consent of the “ dumpers ” to action by Britain against the culprits is necessary, the difficulties and delicacy of the application to G.A.T.T. are apparent. However, if its “ expectation ” of agreement is not fulfilled, the British Government may then feel free to invoke its anti-dumping legislation.