Anti-Dumping Powers (Hansard, 12 July 1976)

§ 8. Mr. Moate
asked the Secretary of State for Trade if he will make a statement on the arrangements being made for the transfer of anti-dumping powers to the EEC.

§ Mr. Dell
Discussions are in progress with the Commission on the transfer of anti-dumping powers. The Commission is certainly well aware of the importance of making adequate arrangements for the extra work it will have to handle.

§ Mr. Moate
Is the right hon. Gentleman not aware of the hostility that will be generated in this country and elsewhere if this House and this Government have to admit their impotence to deal with the many claims that have been received in respect of anti-dumping measures on such things as shoes, clothing or textiles? In view of the irrelevance of this proposal to the well-being of this country, will the Secretary of State seek a derogation or postponement of this regulation?

§ Mr. Dell
There is no point in seeking such a postponement or derogation. This is a decision on which we have committed ourselves, but I must now ensure that it works in our interests. To that end we are having serious discussions with the Commission. I am myself in contact with Sir Christopher Soames—and I hope to meet him shortly—in order to ensure that adequate steps are taken to protect our interests when this transfer takes place.

§ Mr. Hoyle
Can my right hon. Friend say whether, before the Commission will take action to impose anti-dumping powers, 50 per cent. of an industry has to be affected—and not just industry in this country, but industry in the EEC? If that is the case it means that the footwear and textile industries will be very badly affected indeed.

§ Mr. Dell
It is certainly true that the Commission will consider the effects on industry within the European Community, but that does not rule out action to protect industry by a variety of methods which will be open to the Community. One point that I would draw to my hon. Friend's attention is that any anti-dumping measures that would be imposed would affect not just imports into this country but imports into the Community as a whole, and that would be a substantial deterrent factor.

§ Mrs. Kellett-Bowman
Has the Minister read the excellent booklet entitled "Unfair" published in March by the Textile Industry Support Campaign, which sets out some of the measures that other countries, including Common Market countries, take to prevent the destruction of their textile industries? Will the right hon. Gentleman take the hint and prevent the destruction of ours?

§ Mr. Dell
As the hon. Lady is aware, textiles are governed by the Multi-Fibre Arrangement. Both my Department and the Department of Industry are in discussion with the textile industry to clarify the improvements that they would like to see in the operation of the MFA—improvements that we shall attempt to negotiate when it comes up for renegotiation at the end of next year. I have read the document to which the hon. Lady referred and am well aware of the concern in the industry.

Mr. James Lomond
So that we can get this question into perspective, will my right hon. Friend tell us how many actual complaints of dumping the anti-dumping unit has had to deal with in the last three or four years?

§ Mr. Dell
I cannot give the figure for that period wihout notice, but we certainly have a large number of cases to examine, and we have taken action in an increasing number of them. I shall look up the figures that my hon. Friend asks for and let him know.

§ Mr. Higgins
The Secretary of State dodged the question put by his hon. Friend the Member for Nelson and Colne (Mr. Hoyle) about the 51 per cent. limit. On what basis is his Department using that figure? Will the right hon. Gentleman ensure that neither he nor either of his junior Ministers mixes up the two quite separate questions of the MFA, on the one hand, and anti-dumping action, on the other? It is important that this should not be done, in order to have better and more effective action against dumping as well as approval of the MFA.

§ Mr. Dell
I entirely agree with the hon. Gentleman on the second point. The industry is affected both by any antidumping action that may be taken and by the protection given under the MFA. I thought it right, therefore, to refer to both aspects. With regard to the question of my hon. Friend the Member for Nelson and Colne (Mr. Hoyle), my Department has not used the figure of 51 per cent. What my hon. Friend was asking was whether the European Commission would insist on a figure of 51 per cent. What I am saying is that the Commission has to consider the effect on the European industry as a whole. I conceded that point. Against that, it is possible for the Commission to impose antidumping duty and to do it for the Community as a whole. That would be a considerable deterrent factor.