asked the Minister for Industry and Commerce the total amount of this country's exports to the United States affected by the recent import surcharge; and the cost of off-setting this surcharge.
Ceisteanna—Questions. Oral Answers. - Exports to US.
29.
When account is taken of the proposal by the US authorities to remove non-cotton textiles from the scope of the surcharge, the value of Irish exports affected by the measure is estimated at approximately £35 million. While the maximum rate of surcharge is 10 per cent, the actual rate varies from product to product. It is not possible to say precisely what the cost of off-setting the surcharge would be, but it is estimated that it could be as much as £3 million in a full year.
The extent to which the Irish manufacturer will be constrained by his US customer to bear the cost of the surcharge will be determined by a number of factors, such as the elasticity of demand for the goods in question, and the nature of the association between the importer and exporter. The Deputy is no doubt aware that the Government, through Córas Tráchtála, have announced certain measures to help exporters who are adversely affected by the surcharge.
Would the Minister tell us whether sugar confectionery is included in the surcharge arrangements?
Anything controlled by quota is not subject to surcharge.
Is sugar confectionery involved?
Yes—all produce.
Is it intended to cover this particular industry?
The sugar confectionery is affected by a different regulation than that covered in the question by Deputy O'Connell.
No.
This question concerns surcharge. There is a specific Act dealing with sugar confectionery.
I have asked what products are affected and the cost of offsetting the surcharge. I refer to the special charge that will be imposed by the US.
I have answered that question. We have been speaking about two different subjects. One point concerns the 10 per cent import surcharge which was introduced first of all by President Nixon on the 15th August. There has been reference to the importation of sugar confectionery. This is covered under special legislation which was passed in the US some time since then.
The export of sugar confectionery has decreased in recent months, following some action of the American Government.
No. I have not got information here on this point which was not covered in the Parliamentary Question. My recollection of the situation is that there was a situation in the US in which, under the new import quota regulations, a restriction was placed on the amount of sugar confectionery that can be imported into the States. This refers to the volume of such imports. It is a question of a quota. The quota that has been laid down under the legislation is higher than the volume of sugar confectionery which is at present going to the US.