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US RESTRICTIONS ON DAIRY PRODUCTS
11. Mr. Ritchie. Acting under the provisions of Section 104 of the United States Defence Production Act the US Department of Agriculture announced on December 30 a number of changes in the Import controls on Dairy Products. It will be recalled that these restrictions were imposed as a protectionist measure and they have been considered in the GATT and found to be a violation of the General Agreement. From time to time as the situation in the US changes with respect to domestic production, marketing, storage or the related price support programs, the US Administration either is able to relax the restrictions or may be obliged to extend them if imports are having an adverse effect on the domestic market. Among the recent changes one establishes import quotas on dried whole milk, dried buttermilk and dried cream, which limit imports during the period ending March 31, 1953, to quantities approximately equal to the average quarterly imports during the first two quarters of 1952. US imports of dried whole milk and dried buttermilk sharply increased in 1952 and have recently tended to displace domestically produced butterfat and solids. The import quotas are therefore expected to reduce expenditures which might otherwise be necessary under the price support program. As the action taken was mandatory and as US Government purchases of butter and cheese under the price support program have recently increased the action taken was not altogether unexpected. The Canadian dairy industry will be hurt by the action but probably not unduly so. Of more serious concern is the continued existence of this objectionable US legislation which impairs the trade of other countries and creates uncertainties about the possibility of obtaining and holding increased markets in the USA.
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