Australia Accepts U.K. Proposals

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

Australia Accepts U.K. Proposals

(N.Z.P.A ■•Reuter—Copyright) CANBERRA, November 3. Australia accepted the United Kingdom Proposals on regulated butter shipments on the United Kingdom market during the six months to March, 1962, Mr John McEwen, the Minister of Trade, said today.

He said that Australia made the condition that the regulated shipments must apply to all supplying countries.

The United Kingdom proposal was aimed at reducing the quantity of butter offered on the London Market. Any supplying country that did not agree to the regulated shipments would render itself subject to anti-dumping duty. Mr McEwen said the Australian allocation for the period would be 44,000 tons. It was too early to say what production would be, but on present indications the allocation might be less than the amount available for shipment.

Mr McEwen said that to be fully effective, the regulated system needed to apply for a full year to cover producing seasons in the Northern and Southern Hemispheres. He said the introduction of anti-dumping legislation arose largely out of the Aus-tralia-United Kingdom trade agreement of 1956. Australia then sought an undertaking by the United Kingdom that it would take steps to protect traditional suppliers against subsidised or dumped products. “The use by the United Kingdom of its powers to impose anti-dumping duties to protect traditional suppliers is a policy of great interest to Australia.” he said. Restricted exports to Britain meant Australia would have to withhold 6000 to 10,000 tons for 12 months, the Australian Dairy Board chairman (Mr E. G. Roberts) said today.

Mr Roberts said: "We have adopted the restrictions as a realistic approach to stabilising the British market. They represent a considerable sacrifice on Australia’s part; but we were faced with the direct threat of penal duties if we did not make some such move. “We have got to find out-

lets for butter displaced from Britain and we must do it without breaking down prices on these other markets." The Australian Dairy Board, meeting in Melbourne today, was urgently investigating ways of dealing with the situation, he said. “Sacrifice” Claim

The “Melbourne Herald’s” agricultural writer said today that Australia had “secretly agreed” to limit its butter exports to Britain during the next six months. “Australia is being forced to make this sacrifice—which could cost millions of pounds in lost butter sales—because Britain has named us a ‘dumper’ of cheap butter on the British market,” he said. “ ‘Dumpers’ are countries which sell their butter at a high price at home and a low price in Britain (Australia’s home price, now 5s per lb, is often twice the price of Australian butter in British shops).”

The “Herald” writer said the agreement meant that Australia would have to find alternative markets for from 6000 to 10.000 metric tons of butter which she would otherwise have expected to have sold in Britain between now and March. “Over the next 12 months, Australia may be forced to withhold up to 20,000 tons of butter from the British market. On cost-of-produc-tion figures, this butter would be worth £lO million and at present British prices about £5 million,” he said.