“To N.Z’s Advantage If U.K. Joins E.E.C.”

Press, Volume XCIX, Issue 29384, 10 December 1960, Page 14

“To N.Z’s Advantage If U.K. Joins E.E.C.”

(New Zealand Press Association) ASHBURTON, December 9. Even at the cost of losing Commonwealth preferences New Zealand should urge the entry of Britain and the Commonwealth into the European Economic Community as the best method of ensuring the developing markets for agricultural produce, the professor of agricultural economics at Canterbury Agricultural College, Professor B. P. Philpott, said at a meeting at Ashburton today.

New Zealand had taken up a “firm and unrelenting attitude” against suggestions of Britain joining the Community, Professor Philpott said. “But the key note of our approach must be flexibility. We must take a long-term, rather than a short-term view.” Opinion in New Zealand on the E.E.C. was still divided but little attempt had apparently been made to devise a means of securing access for New Zealand products to the E.E.C. market. This might be achieved, if Britain could join the E.E.C. on terms favourable to New Zealand, he said. “Contrary To Ottawa” Great difficulties faced New Zealand in the marketing of expanding production. On the British market, a Government subsidy—contrary to the spirit of the Ottawa Agreement—kept the price of New Zealand products down. To dispose of her expanding production, New Zealand had to look to other markets; next to the United States, Europe offered the greatest opportunity.

Britain herself was faced with a choice of joining the European Community or engaging in the trade war with it. If Britain joined the Community on the present set-up of quotas for produce, the effect for New Zealand would be nothing short of disastrous, Profesor Philpott said.

A group in England advocated the entry of Britain into the Community even at the sacrifice of Commonwealth preferences. They argued that the loss of preferences would be worth while to gain access to the rich European markets, which promised to become a major world trading bloc. Professor Philpott outlined various ways in which New Zealand could become associated with the European Economic Community. There were three possible conditions of Britain’s entry into the European Economic Community:— (1) Britain could enter the Community, with the Commonwealth. (2) Britain could enter, and the other Commonwealth countries, although not joining, could negotiate bilateral agreements with Community nations. (3) Britain could enter on the understanding that agricultural protection by European Community countries would not be by quantitative restrictions but by a reasonable tariff. Form Of Protection

It was most important that the situation be explored while the form of agricultural protection to be adopted by the Community had not been decided. Once the form had been chosen New Zealand could find herself virtually excluded from a great potential market. Professor Philpott said. New Zealand’s low-cost production structure meant that if it gained access to the market, even allowing for a tariff of as much as 20 per cent.. New Zealand would have little difficulty in competing with the high-cost .structure of European countries.