§ Mr. Matthewsasked the President of the Board of Trade what decision he has taken on New Zealand's application for action against dumped and subsidised butter imports into Great Britain ; and if he will make a statement.
§ Mr. ErrollThe pressure of supplies of butter on the British market has for some time caused concern, and in August the New Zealand and Danish Governments applied for the imposition of anti-dumping or countervailing duties on imports of butter from certain countries into Britain.
We considered that the difficult situation in the British butter market could most appropriately be solved by 10W voluntary measures of restraint on the part of countries supplying dumped or subsidised butter to Britain. On our initiative a special meeting of the main supplier countries was convened under the G.A.T.T. at the beginning of September, in the course of which a programme was discussed for the limitation of shipments of butter to Britain in the six months starting 1st October. However no agreement proved possible.
The Board of Trade accordingly considered the applications for duties under the terms of the Customs Duties (Dumping and Subsidies) Act, 1957. It found that the New Zealand dairy industry was threatened with material injury from dumped and subsidised butter imports into Britain and I therefore decided that action was necessary.
I am convinced that the plan for limitation of shipments discussed at the G.A.T.T. meeting offers a fair and reasonable way of dealing with the problems for the six months ending 31st March, 1962. The Governments of New Zealand, Australia, Denmark and the Netherlands have indicated that they are prepared to limit their shipments to the figures proposed in the G.A.T.T. discussions provided all other countries concerned will do the same. These other countries have therefore been asked to agree, as a matter of urgency, similarly to limit their shipments; it has at the same time been explained to them that Her Majesty's Government will be obliged immediately to take the necessary steps for the imposition of antidumping duties equal to the margin of dumping should they be unable to comply with this request. Where the imposition of anti-dumping duties would require the prior consent of the contracting parties to the G.A.T.T., Her Majesty's Government would seek this but would also be ready, pending a decision by the contracting parties, to consider the imposition forthwith of a countervailing duty-under the provisions of the G.A.T.T. which permit the imposition of such duties without the prior consent of the contracting parties-on butter imports from any source which in the meantime unduly increased its supplies to the British market.
Should shipments of dumped or subsidised butter to Britain be made during 11W the six-month period by countries other than those who have been approached, it would be necessary, in the absence of appropriate assurances by those countries, to take steps to impose appropriate duties on them.
Her Majesty's Government greatly hope that the countries approached will 12W recognise that these proposals provide an equitable short-term solution. They are intended to provide a breathing-space for the next six months; in the meantime, the search for a longer-term solution to the problem of surplus butter supplies on the British market will have to be continued.