EUROPEAN FREE TRADE AREA

Press, Volume XCVII, Issue 28700, 25 September 1958, Page 13

EUROPEAN FREE TRADE AREA

Concern Expressed By Nordmeyer (N.Z Press Association—Copi/rtphti (Rec. 8 p.m.) MONTREAL, September 24. The New Zealand Minister of Finance (Mr Nordmeyer) today expressed concern about the impact of the Western European free trade area plan on Commonwealth exports to Europe. He told the Commonwealth trade and economic conference that New Zealand’s position was the same as that of other countries in the Commonwealth—it did not wish to see the movement towards European integration result in the restriction or closure of the European market for products of Commonwealth countries.

Mr Nordmeyer said New Zealand’s trade with Europe was largely conducted with the six nations which comprised the Rome Treaty—France, West Germany, Italy and the Benelux countries. It seemed to New Zealand that these six were contemplating a “discriminatory, inward-looking, protective agriculture system.”

“We feel.” said Mr Nordmeyer “that these six taken together may give greater protection to agriculture than the six were giving before the Rome Treaty (the European Economic Community) came into effect.” Mr Nordmeyer said this trend towards self-sufficiency in Europe would tend to shut out the products of third countries like Canada. South Africa. New Zealand and others. “We hope this view of ours is pessimistic, but we are afraid it is not," Mr Nordmeyer said Commonwealth countries were influenced in their view by past experience, when they faced persistent difficulties in obtaining entry into Europe for dairy products. In recent years, such arrangements as they had managed had declined to a very insignificant level. Mr Nordmeyer said he excepted meat from his observation :

New Zealand had noticed persistent discrimination against it in Europe in favour of European suppliers. European production had expanded under the influence ot high pHce supports. Not only was Europe restricting ..imports, Jbut New Zealand’s market in Britain, where it had free- entry, nad been adversely affected by the expansion of butter production in . Europe under high protection. The resulting exports were spilling over and being dumped on the European market. That was why New Zealand felt this development among the six nations of Western Europe and extension to the free trade area could well have adverse effects for primary producing countries. Mr Nordmeyer said. He said it was a problem of persuading the s!» countries to adopt a liberal attitude towards “third" countries, dot only in Europe, but outside Europe. New Zealand had made representations in diplomatic notes to each of the six Rome Treaty countries last year and again in July this year.