The Press FRIDAY, OCTOBER 13, 1961. Support For Tasman Free Trade Area

Press, Volume C, Issue 29643, 13 October 1961, Page 12

The Press FRIDAY, OCTOBER 13, 1961. Support For Tasman Free Trade Area

The idea of an AustralianNew Zealand free trade area is gathering influential support. The latest advocate is Sir John Crawford, former Secretary of the Australian Department of Trade and now Director of Pacific Studies at the Australian National University. Sir John Crawford favours Tasman free trade as one of the measures the sister Dominions should take to offset the possible effects of Britain’s entry into the European Economic Community. His comment on this prospect was another illustration of the greater thought given in Australia to the implications of British membership of the E.E.C. While New Zealanders generally are inclined to rely on British assurances of consideration, Australians, and particularly the Australian Government, are making quite detailed plans for reorganising their foreign trade to meet any reduction in the British demand for their products. Perhaps New Zealand will give more attention to this issue after the Monetary and Economic Council has presented its next report on the long-term prospects of the national economy. Even if Britain were not likely to join the E.E.C., Australia and New Zealand should be considering closer trading relations. In spite of many missions and committees, the Dominions have

not co-operated very well. New Zealand, in particular, has had good cause to complain about Australian agricultural protection and the methods adopted by Commonwealth officials. As Mr C. W. Bumard, director of the Dairy Industry Information Service, reminded the New Zealand Manufacturers’ Federation, Australia’s policy of supporting a high-cost dairy industry makes it difficult for New Zealand to prevent the dumping of butter on the London market. He could have gone further and said, like Sir John Crawford, that Australia itself should be a natural market for New Zealand’s highly efficient dairy industry. In return, of course, New Zealand would have to accept competition from Australia’s secondary industries. However, many, if not most, New Zealand secondary industries could stand up to competition if they had to, particularly since they would also have the opportunity to compete on the Australian market. The economies of Australia and New Zealand are more complementary than is sometimes realised; and there are good reasons why two small countries with similar backgrounds and similar views should pool their resources. If Britain’s entry into the E.E.C. compels them to sink their political differences it may be a blessing in disguise.