§ 11.14 p.m.
§ The Under-Secretary of State for Trade and Industry (Mr. Nicholas Ridley)I beg to move,
That the Anti-Dumping Duty (No. 4) Order 1970 (S.I., 1970, No. 1641), dated 3rd November 1970, a copy of which was laid before this House on 6th November, be approved.This Order, which was made under the Customs Duties (Dumping and Subsidies) Act 1969, imposes an anti-dumping duty of 10s. per cwt. on imports of new potatoes from France during the period 24th to 30th June 1970. I am glad to be able to demonstrate that the anti-dumping procedure does work. The National Farmers' Union and the Potato Marketing Board put in evidence on this subject as a result of which the Order has been laid.The Order was made following our investigation into an application made by the British potato growers on 18th June for the imposition of anti-dumping duties on French new potatoes in which they also requested the immediate imposition of a provisional anti-dumping charge pending completion of the Department's investigation. After an urgent preliminary examination, we concluded that a prima facie case of materially injurious dumping had been made out and that it was necessary to impose a provisional charge to anti-dumping duty in view of the shortness of the season which, for French new potatoes, is virtually confined to the month of June. The charge of 10s. per cwt. imposed on 24th June represented our estimate of the margin of dumping on the basis of the information then available.
The laying of the provisional charge took only six days, which shows that the procedure can be made to work very quickly indeed. The charge was imposed initially for three months, but an Order was made when the initial three months expired extending the charge for another three months. This was done at the request of importers and exporters of French new potatoes to give them more time to present their case; and because, unless a definitive anti-dumping duty is imposed while the provisional charge is 1240 in force, the charges collected must be refunded. This is the definitive duty Order that is before the House.
The investigation of the application established that practically all exports of French new potatoes to Britain during the greater part of June were dumped, and by margins mostly well in excess of 10s. per cwt. Evidence was obtained comparing the prices in London and in Paris and returns were obtained from the markets. We were satisfied that the effect of the dumping had been to reduce the prices obtained by British growers for new potatoes to a level substantially below that which they would otherwise have obtained, thereby causing them material injury. The imposition of the provisional anti-dumping charges remedied to a large extent this depression of prices on the British market, and there can be little doubt that, if this action had not been taken, the British growers would have suffered further material injury. In the event the price was depressed for about one week.
These findings relate, of course, solely to the 1970 season; we cannot predict what will be the conditions in 1971, but we have made it clear to both the British growers and the French exporters that we shall be ready to take prompt action if we have evidence of further materially injurious dumping next year.
The anti-dumping duty imposed under this Order relates solely to imports in the 1970 season. It is, as the Act requires, limited to the amount of the provisional charge of 10s. per cwt., which is now retained as anti-dumping duty. This works out at about 1d. per lb. on the price of new potatoes during the last week of June only. It applies only to imports made on and after the date on which the provisional charge came into operation, that is 24th June. The period for which the duty applies ends on 30th June because imports of French new potatoes are banned for plant health reasons after that date. We were satisfied that the imposition of this duty is in the national interest. I hope that the House will approve the Order.
§ Question put and agreed to.