BUTTER FOE AMERICA.

New Zealand Herald, Volume LXV, Issue 20081, 19 October 1928, Page 14

BUTTER FOE AMERICA.

AUSTRALIA PENALISED. INCREASE IN THE DUTY. BENEFIT TO NEW ZEALAND. The advantage over New Zealand which Australia has possessed, by virtue of the Paterson export bounty scheme, in marketing butter in America, has been removed by the latest move of the United States. For a long while past America has been perturbed by the manner in which Australian exporters of butter, aided by the Paterson export bounty of threepence a. pound, have been enabled to comfortably under-scll American producers. Early last month it was decided to take action to prevent the " dumping " so made possible.

Action was taken under section 303 of tho United States Tariff Act, 1922, which provides that where another country is exploiting the market under shelter of an export bonus additional duties to cover it may be imposed. Accordingly, from the first week in this month, Australian butter entering America became subject to an extra duty of approximately 6 cents, to cover the Paterson bounty, making the total duty 18 cents, compared with the 12 cents paid on New Zealand butter. Superficially this places Australia on an equal footing with New Zealand so far as the American market is concerned. An" Auckland exporter of dairy produce, however, when discussing the position yesterday, said production costs in Australia were higher than in New Zealand, and the Commonwealth industry, once having become accustomed to the benefits of an export bounty, would feel sevciely the nullification of these benefits, so far as America was concerned. The effect, indeed, might be to virtually eliminate Australian butter from that centre of consumption, to tho advantage of New Zealand's growing trade.