asked the Minister for Industry and Commerce if he is aware of the serious problems facing shirt manufacturers and shirt factory workers in County Donegal caused by the dumping of shirts from Korea, Portugal and other countries on the Irish market; and if he will take measures at home or in Brussels to deal with the problems.
Ceisteanna—Questions. Oral Answers. - Shirt Industry.
52.
I am aware that the increasing volume of imports of shirts particularly from South Korea is creating serious problems for the shirt industry in Ireland and I am gravely concerned about the matter. If the Deputy or any other person has evidence that these imports can properly be described as dumped the evidence should be made available to An Coimisiún Dumpála.
The quota restrictions applied by us to a limited number of countries did not apply to Korea and it would not be possible, because of our international obligations, to extend them at this stage to that country. At the level of the European Commission, it is intended in the very near future to negotiate with Korea a bilateral agreement in respect of textiles and clothing, including shirts, which will regulate imports of these goods to the Community.
Imports from Portugal into this country and into the other member states of the Community are governed by the terms of the EEC/Portugal agreement which provides for free trade in industrial products after a transitional period ending on 1st July, 1977. For textile products, however, Ireland negotiated a longer transitional period. In our case, duties on such products generally are being dismantled over a transitional period ending on 1st January, 1980. In addition, imports of textiles and clothing are subject to annual Community ceilings. These ceilings will be based on previous imports and will be raised annually by 5 per cent. The appropriate current level of the common customs tariff—in our case our third-country rate of duty —may be applied to imports above the level of these ceilings.
I am continuing to keep the whole matter of imports under review and will take whatever steps are open for me to safeguard the Irish industry.
Arising out of the Minister's reply, part of which indicated that I should give facts to the Minister about dumping, I am not qualified to do this. All I am qualified to do here is to bring this serious problem to the notice of the Minister and, having done that, could I ask him if he will use the resources at his disposal to determine whether or not there is dumping? Whether or not it can be called dumping, it is creating a serious problem. I would ask the Minister to do what some of the other EEC countries have done unilaterally: either to raise the tariffs or to introduce the anti-dumping provisions which are at the disposal of member countries of the EEC. Will he do that?
There are serious misapprehensions about the nature of our treaty obligations under the Accession Treaty. If the Deputy will familiarise himself with the nature of the undertaking we gave at that time, he will realise that the range of available actions is extremely limited, and he will realise that he is inaccurate in saying that other countries took unilateral action. He ought to realise it, if he contemplates the position, that the possible repercussions on Ireland of unilateral action are very grave indeed. At this moment, as a result of my intervention, there are representatives of the Commission in Ireland examining the various possible mechanisms that may be invoked. It is extremely unwise for Deputies or others to suggest that we can unilaterally repudiate our treaty commitments without very grave damage to our economy.
In regard to the matter of dumping, I accept that Deputies are not experts. I also understand that Deputies have very wide contacts. We are in a difficulty with a country like Korea because what they are doing is not legally dumping. It is very damaging but it is not legally dumping because their cost of production is so very low. It is perfectly permissible, in addition to the sources of information available to me and to my Department, to ask Deputies to pass on to me for action any specific information which is available to them.
Further arising from the Minister's reply——
It is long past the time for questions.
I should like to ask a second supplementary. In the case of Korea if it cannot be established that the nomenclature of dumping can be used, is it not possible to use the tariff barrier?
The matter of Korea is being handled by the Commission as a matter of extreme urgency at my instigation. It is not possible for individual members of the nine to set up barriers against Third World countries. They cannot do it unilaterally. It must be done at Commission level. I am assured by the Commission that there will be some action on this in the very near future. I have indicated that I want it before Christmas. I am not certain that it will be before Christmas but it will be in the very near future on the specific matter of Korea.
The remaining questions will appear on tomorrow's Order Paper.