411.656/8–1551
The Italian Embassy to the Department of State
No. 9205
The Italian Embassy presents its compliments to the Department of State and has the honor to call its kind attention to the following.
On August 9, 1951, the United States Department of Agriculture announced that the import of cheese had been placed on a quota basis, in accordance with the provisions of the Defense Production Act, as [Page 1434] amended (Andresen Amendment), in view of circumstances indicated therein.
The Italian Embassy wishes to point out that none of the circumstances mentioned in the amendment, requiring a control of imports, exists in the case of Italian cheese, since imports of this product from Italy are still far below the pre-war level.
Italian cheese imports do not result in an unnecessary burden of expenditure under the U.S. Government price support program, because said imports are not competitive with the American product and are, moreover, sold at a much higher price than the domestic production.
In fact, the bulk of Italian cheese imported into the United States is a special type of cheese, sheep’s milk cheese, which is not produced in the United States and therefore is not in competition with any domestic production.
Other typical Italian cheeses are not produced in the United States in appreciable quantities and in any event their imitations are not competitive, neither in price nor in quality, with the corresponding Italian products. Therefore, any further restrictions on imports of Italian cheese in favor of the American products (which are already amply protected by the high customs duties, customs procedures, and by the regulations of the Food and Drug Administration) are detrimental to the American consumption of these products and at the same time deprive one of the United States’ best customers of her means of earning the dollars needed for the payment of her purchases of American products.
Cheese was always one of the most important and typical Italian exports to the United States and to restore this export to the normal pre-war level is in the interest of both countries, in order to reduce the enormous unbalance of trade and to lessen the “burden or expenditure” generously sustained by the United States Government in its program of assistance to the Italian economy.
Italy is still in the process of rebuilding her trade with the United States and therefore restrictions limiting her exports to the United States would hamper the resumption of her vital currents of exports.
The recent regulation of the Department of Agriculture will cause a contraction of the Italian cheese imports into this country with a consequent increase of the Italian trade deficit. Such a situation will finally force Italy to reduce her purchases of wheat, cotton and other agricultural products in the United States, which are of vital interest to millions of farmers and for which a price-support program is likewise a further burden of expenditure to the American taxpayers.
The Italian imports of cheese are still noticeably lower than the levels reached during the pre-war period, based on a normal commercial [Page 1435] situation. Despite the progress of the past few years, these imports from Italy and other countries still represent a negligible fraction of the American production, which—in respect to the Italian type of cheese—was abnormally developed because of the lack of supplies during the war.
The news of the restrictions on imports of cheese in the United States has caused the greatest concern in all Italian agricultural and industrial circles interested in the exports of cheese to the United States, which depend entirely upon this activity for their livelihood.
The adoption of a quota basis import policy means that the United States is now advocating a return to methods and system which they tried to abolish through the various OECE [ OEEC ?] and ECA initiatives in Europe.
The adoption of the quota system for cheese has created great perplexity in the Italian Government and in the public opinion and will certainly hamper further progresses toward a policy of liberalization of exchanges, as supported by OECE and advocated by the American Government for a closer economic cooperation and integration among free nations.
Furthermore, a contraction of the imports of Italian cheese would disregard the provisions of Art. 11 of the GATT and would void the United States Tariff reductions recently agreed upon and for which Italy granted similar tariff reductions in favor of American products.
It is also feared that similar restrictive measure will be applied by the Department of Agriculture to olive oil which, like cheese, is one of the most important and traditional items of Italian exports to the United States.
Italy, unfortunately, has few lines of exports for which she can find an outlet in the United States market; should these currents be cut off by restrictive measures on the part of the United States Government, disastrous consequences of economic and social character would result for a country already facing a large unemployment and enormous difficulties in earning, through her export trade, the dollars needed for the procurement of essential foodstuffs and raw materials.
In view of the foregoing, the Italian Embassy would be grateful if the Department of State would give its particular attention to this matter, in order to avoid the unfavorable repercussions which the adoption of such a measure would cause to the trade relations between Italy and the United States.
The Italian Embassy expresses its thanks to the Department of State for its kind consideration and assistance.