U.K. Assurances To Maintain Market

Press, Volume CII, Issue 30129, 13 May 1963, Page 14

U.K. Assurances To Maintain Market

The understanding reached and the arrangements now agreed on New Zealand butter sales to the United Kingdom are embodied in the following announcement by the British Government. “Under the trade agreement signed by the New Zealand and British Governments at Wellington on August 12, 1959, the British Government have an obligation to accord to New Zealand butter a margin of preference of not less than 15s a cwt. “In connexion with the proposals under discussion by the member States of the European Free Trade Association for an acceleration of the time-table for the reduction of tariffs within the association, the British Government have requested the New Zealand Government to agree that the British Government would be free, notwithstanding the obligation in the trade agreement, to suspend the tariff on all butter imported into Britain for the duration of the present system of the imposition of quotas on imports of butt r. “This system was imposed in order to prevent material injury to the New Zealand dairy industry as a result of dumped or subsidised imports of butter coming on the British market. “The British Government have assured the New Zealand Government that, first, the British Government fully accept their obligations under article 13 of the 1959 trade agreement, under which the British Government agree to consider taking action to prevent threatened injury due to the competition of dumped or subsidised exports from third countries. Such action could take the form of antidumping or counter-vailing duties. “Second: the value to New Zealand of article 13 has been demonstrated by the action already taken by the British Government in applying the present system of quotas to imported supplies of butter. “Third: the British Government have no intention of removing the import restrictions so long as the circumstances on account of which they were imposed remain The British Government would consult the New Zealand Government if they were proposing to change the system. “Article 13 of the trade agreement will remain as a basis for any future discussion of this and any related issues “Fourth: the British Government will consult with the New Zealand Government each year about the total quantity of butter that will be allowed to be imported nto Britain during the following year. “Fifth: the British Government will continue to allocate to New Zealand not less than its present proportionate share of the total permitted imports, and (except

as may be agreed by the New Zealand Government) a minimum of not less than the quantity allowed to be imparted from New Zealand under the existing quotas. “Sixth: the British Government do not intend to depart from their present policy of not encouraging the expansion of milk production in Britain for manufacturing purposes. “Seventh: the British Government emphasise that their request is confined to butter and does not extend to cheese. “In the light of these understandings and undertakings the New Zealand Government have agreed to the British Government’s request.”