asked the Minister for Industry and Commerce whether the further restrictions imposed by the United States on the import of woollen goods is likely to have an adverse effect on this country's export trade of high quality fabrics.
4.
Ceisteanna—Questions. Oral Answers. - U.S.A. Restriction on Imports of Woollen Goods.
3.
asked the Minister for Industry and Commerce how Irish manufactured cloths will be affected by the recent alteration in the rate of duty imposed by the United States Government.
With the permission of the Ceann Comhairle, I propose to take questions Nos. 3 and 4 together.
The U.S. Tariff Quota on woollen fabrics is operated on the basis that when imports from all sources amount to 5% of total home production, the rate of ad valorem duty is increased from 25% to 45%. For 1958 the “break-point” was established at 14.2 million lbs. but because of falling U.S. production, the “break-point” for 1959 has been fixed at 13.5 million lbs.—a drop of 700,000 lbs. This reduction must necessarily affect adversely this country's ability to export mill-woven woollen fabrics to the United States.
The special arrangement under which the increased duty is limited to 30% in the case of hand-woven fabrics remains unaltered.
Can the Minister say if it follows from the revised rate of duty that in certain circumstances cloth from this country might be excluded altogether if the quota was reached, say, prior to the date when the exports from this country had been sent?
It is true that we regard the arrangement as being particularly unsuitable for the trade of a small country like ours. We have made repeated representations to the United States authorities concerned with a view to the introduction of an alternative system or even for greater scope for trading. These representations were unsuccessful in respect of this year's arrangements, but they will, of course, be continued in respect of next year's.
May we take it from the Minister's reply that the restriction applies to mill-woven goods and that therefore cloth woven on a loom situated in the weaver's house would be excluded?
We were indeed gratified by the success of the representations we made to the U.S. authorities with a view to getting a special arrangement for hand-woven fabrics and that special arrangement has been continued into this year.