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Imports of woven labels from Japan



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FOR PRESS 857. /

STATEMENT BY THE ACTING PRIME MINISTER AND

MINISTER FOR TRADE,MR.J. ■ McEWEN. '

The Acting Prime Minister and Minister for Trade,

Mr. McEwen, said today that the Advisory Authority on

the Trade Agreement with Japan (Mir. M.E. McCarthy) had

reported on a request by the Australian woven labels

industry for temporary protection against imports of

woven labels from Japan.

Mr. McCarthy found that the local manufacturers

of woven labels had not suffered injury as a result of

import competition from Japan. He concluded, however,

that if the level of requests for import licences is sus­

tained, and imports follow the same pattern, there could ·

be serious damage to the Australian industry. He there­

fore recommended action to restrict imports of woven labels

from Japan.

Mr. McCarthy's recommendation was based on the

assumption that the high level of licences issued during

the previous licensing period would be reflected in a

corresponding increase in imports.

In the absence of evidence other than licensing

that damage was likely to occur, and because the evidence

based on licensing statistics was inconclusive, the

Government considered that this assumption should be

tested against imports of labels from Japan before a

decision was made on Mr. McCarthy's recommendation.

There has, in fact, been no increase in the rate

. of imports from Japan since Mr. McCarthy reported, and the

value of imports from Japan during July and August was

lower than for the corresponding period in 1959»

. . . / 2

■)

r .2 . .

In view of the fact that imports of labels have

continued to arrive at a lower rate than in 1959 despite

the higher value of licences issued during 1960, and in

the absence of other evidence that damage may occur, the

Government has decided that no special action is warranted.

However, should future imports be at a rate which

confirms the assumption on which Mr. McCarthy's recommend­

ation was based, the Government would give further consider­

ation to the question of taking action to accord short­

term protection to the industry pending the outcome of

the present Tariff Board inquiry.

The question of the industry's normal protective

needs was referred to the Tariff Board on 22nd June, 1960.

70/60T

Canberra

Friday, 30th September, 1960.