JOINING THE E.E.C. (10) N.Z. Trade Agreements As Talking Points

Press, Volume CI, Issue 29913, 29 August 1962, Page 18

JOINING THE E.E.C. (10) N.Z. Trade Agreements As Talking Points

(By a Staff Correspondent)

In the previous article in this series it was shown how dependent New Zealand is on the United Kingdom market for her main exports. To a great extent, this dependence is due to guarantees given New Zealand until comparatively recently that the United Kingdom 'market would remain open to New Zealand experts. New Zealand exports of meat and dairy products are covered by trade agreements which give New Zealand unrestricted rights of duty-free access to the United Kingdom market until 1967. A trade agreement between the two countries signed in August. 1959, reads fin part) as follows: “The United Kingdom Government undertake that until May 31. 1967, they will admit, without restriction of quantity, imports of the following New Zealand goods, namely butter. cheese, skim and butter milk powd’Cirs. casein, and chilled and frozen pork ” The meat trade between New Zealand and the United

Kingdom was the subject of a separate agreement in 1952, before the British bulk purchase cf meat ended. Effective until October 1. 1967. this “joint declaration" reads (in part) as follows: “If and when the United Kingdom Government ceases to be the sole importer of New Zealand meat . . . [it] will place no restrictions on the quantities that may be offered for sale on the United Kingdom market." These two agreements _ are incompatible with British membership of the E.E.C. The Treaty of Rome provides for

the protection of the agricultural interests of members by the imposition of quotas and duties on imports of agricultural products. Clearly, if Britain is to sign the Rome Treaty her treaties with New Zealand—and with other Commonwealth countries —will have to be terminated. The British negotiators have no doubt attempted to use these treaties in their bargaining with the Six “Not Our Concern” The Six, however, have almost certainly told Britain that her commitments to New Zealand are Britain’s concern, not the Six's, that Britain must make her own peace with New Zealand, and that unrestricted. duty-free imports of New Zealand produce must cease with British accession. While New Zealand is in a strong mural and legal position in negotiating with Britain, in practice. New Zealand's bangaining strength is not very great. This was demonstrated early this year when New Zealand protested to the United Kingdom about the dumping of foreign butter on the United Kingdom market. Britain agreed to restrict these competitive imports—but only on condition that New Zealand also limited her butter exports to the United Kingdom. This instance shows the need for New Zealand to maintain a flexible attitude in these negotiations. An uncompromising stand on legal rights could be financially disastrous. [To' Be Concluded.) 1