U.K. Entry Into E.E.C. Favoured By Economist

Press, Volume XCIX, Issue 29264, 23 July 1960, Page 4

U.K. Entry Into E.E.C. Favoured By Economist

“Would New Zealand want Britain to join the European Economic Community?” Professor B. P. Philpott, professor of agricultural economics at Canterbury Agricultural College, told a meeting of the Canterbury branch of the New Zealand Institute of Agricultural Science this week that he thought the answer would be “Yes.” Although no-one quite knew yet what the E.E.C.'s “managed market” for agriculture meant, it was likely that there would be limitations on the imports of agricultural produce, he said. As its member countries were not now great importers of this type of goods New Zealand had no great reason for complaint, except that it seemingly shut a door to the sale of lamb.

However, it was likely that on a long-term basis the area would rival the United States in wealth and there would be a great increase in the demand for foodstuffs. The question would then be whether its own producers could meet this demand or whether the area would have to depend more on imports. European agriculture was already a high cost agriculture and it whs likely that it would become even higher. There was, he felt, a considerable chance that imports would be increased. There was also likely to be an increased demand for textiles and here again the question was whether it would be in wool or synthetics. The E.E.C. could have difficulty in financing wool imports. The United States was becoming interested in the area and American firms, among then* synthetic fibre producers, were investing money in the area. Position of U.K. Discussing the position of Britain in relation to the E.E.C., Professor Philpott said that she had not regarded herself as a European Power, had been doubtful about the political implications of joining Europe, and she had felt that she would have to open to other countries her Commonwealth markets. She had refused to join the E.E.C., but her European Free Trade scheme, a typical British compromise in which she sought to keep a foot in both camps, had failed, and now she was having second thoughts about the E.E.C. British entry into the E.E.C. would have a liberalising influence, said Professor Philpott, and

although jit might mean that New Zealand might have to give up her trade concessions in the United Kingdom she could afford to do that if on, the coat tails of Britain She had free and untratnelled entry into European markets.

If Britain did not join, Professor Philpott urged that New Zealand should seek that the area achieved its protection by tariffs and not by quotas, and New Zealand should use its ability to bargain with E.E.C. countries under the agreement with Britain whereby tariffs against goods from countries other than Britain could be reduced from 20 per cent, to 10 per cent. The trouble was that countries like Germany. Italy and France were not large consumers , of lamb, the problem New Zealand commodity. Professor Philpott said that this tariff concession had hardly been used at all because he believed many people did not want to see more goods brought into the country, but preferred to see them manufactured at high cost here. •