U.K. May Impose Duties To Combat Dumping

Press, Volume C, Issue 29662, 4 November 1961, Page 15

U.K. May Impose Duties To Combat Dumping

(N^J’A.-Reuter— Copyright)

LONDON, November 3. i Th j Government said yesterday it might be “obliged immediately” to clamp down fresh duties on butter imports to combat dumping. The President of the Board of Trade (Mr F. J. Errol) said in a written Parliamentary reply this step would be taken if certain countries could not agree to limit butter shipments to agreed amounts during the six months ending at the end of March next year.

step , w ? u Jd a^so be taken if countries other than those asked to limit shipments dumped or subsidised butter to Britain” during the six-month period. , supplying countries agree to the voluntary cuts requested, about 200,000 tons less butver should come on to the market to the six months ending March 31, 1962.

Mr Errol had been asked by Mr Gordon Matthews

(Conservative, Meriden) what decision the Board of Trade had taken on an application by New Zealand for action against dumped and subsidised butter Britain. Mr Errol replied:— "The pressure of supplies of butter on the British marhet has for scene time caused concern, and in August the New Zealand and Danish Governments applied for the Imposition of anti-dumping or countervailing duties on imports of butter from certain countries into Britain. "We considered that the difficult situation in the British butter market could most appropriately be solved by voluntary measures of restraint on the part of countries supplying damped or subsidised butter to Britain.

Meeting Convened “On our initiative, a special meeting of the main supplier countries was convened under the GA.T.T at the beginning of September, in the course of which a programme was discussed for the limitation of shipments of butter to Britain in the six months starting on October 1. However, no agreement proved possible. "The Board of Trade accordingly considered the application for duties under the terms of the Customs Duties (Dumping and Subsidies) Act, 1957. They found that the New Zealand dairy industry was threatened with material injury from dumped

and subsidised butter imports into Britain and I therefore decided that action was necessary.

"I am convinced that the plan for limitation of shipments discussed at the GA.T.T. meeting offers a fair and reasonable way of dealing with the problems for the six months ending March 31, 1962

“The Governments of New Zealand, Australia, Denmark _ and the Netherlands have indicated that they are prepared to limit their shipments to the figures proposed in the G.A.T.T. discussions provided all other countries concerned will do the same. “Itiese other countries have therefore been asked to agree. as a matter of urgency, similarly to limit their shipments. It has at the same time been explained to them that H.M. Government will be obliged immediately to take the necessary steps for the imposition of antidumping duties equal to the margin of dumping should they be unable to comply with this request. “Where the imposition of anti-dumping duties would require the prior consent of the contracting parties to the GA.T.T.. H.M. Government would seek this but would also be ready, pending a decision by the contracting parties, to consider the imposition forthwith of a countervailing duty (under the provisions of the GATT, which permit the imposition of such duties without the prior consent of the contracting parties) on butter Imports from any source which in the meantime un-

duly increased its supplies to the British market "Should shipments of dumped or subsidised butter to Britain be made during the six-month period by countries other than those who have been approached. It would be necessary, in the absence of appropriate assurances by those countries, to take steps to impose appropriate duties on them.

“HM. Government greatly hopes that the countries approached will recognise that these proposals provide an equitable short-term solution. "They are intended to provide a breathing space for the next six months: in the meantime, the search for a longer-term solution to the orobtem of surplus butter supplies on the British market will have to be continued.” Mr Erroll said. Steps Welcomed The faramers’ unions and the milk marketing boards said last night they hoped

the Government’s proposed limitation of shipments of butter to the United Kingdom market would be an effective step towards restoring the market to a more economic level The National Farmers’ Union said in a statement that the unions and boards welcomed the steps announced by the Government. The unions and boards made joint representation on August 23 in support of the New Zealand and Danish Governments’ application. Countries asked to limit butter shipments to Britain are South Africa, the Irish Republic, the Argentine, Poland, Finland. Norway, France, Sweden, and Austria, an authoritative source said. According to latest available figures, the amount of butter in cold storage in Britain on October 20 this year totalled 36,700 tons, the source added. On October 21 last year, the amount was 19,800 tons.