Defense Against Dumping

Besieged by union and management representatives from its limping textile industry. Canada acted last week to increase tariffs against underpriced fabrics from abroad--mainly the U.S. Revenue Minister James McCann announced in the House of Commons that, under newly adopted customs rules, his office could apply special dumping duties on textiles sold in Canada for less than the "normal price" previously charged by manufacturers in their own countries. This was intended to meet a complaint that U.S. manufacturers sell end-of-season stocks in Canada at cost or less.

For two years, textiles have been a deficit-ridden exception to Canada's general prosperity. The rise in value of the Canadian dollar removed a competitive advantage just when U.S. manufacturers began putting steam into their Canadian selling drive. Canadian manufacturers, who produced 68% of their nation's fabrics in 1950, will be lucky to hold half the market this year. The result: shutdowns and layoffs in many of Canada's textile mills (normally the nation's biggest employers of factory workers), and short work weeks in the mills that kept going.

No one expected the new anti-dumping rules to restore textile prosperity overnight. It was doubtful whether that could be accomplished even by higher tariffs and more protection--devices which Canada criticizes in other nations, and for which Canadian consumers would foot the bill. But, with the jobs of 100,000 workers at stake, the government may have to try just such unpalatable measures.

This file is automatically generated by a robot program, so reader's discretion is required.