Growing Interest In Customs Union

Press, Volume CI, Issue 29956, 18 October 1962, Page 16

Growing Interest In Customs Union

“Should we have tree trade between Australia and New Zealand?” This question—the title of a “discussion paper” issued by the New Zealand Institute of Economic Research last year—was put to the director of the institute. Dr C. A Blyth, in Christchurch yesterday “There is a prima facie case for increased specialise non and exchange between Australia and New Zealand." Dr Blyth replied. with a smile, quoting from the conclusions of the institute's paper “Yes, there is certainly more interest in this topic now among businessmen," he said, in reply to a further question In the last six months the institute had held three “workshops" on the prospects for New Zealand

exports ot manufactures (the fourth will open in Christchurch today), and at each one the participating businessmen had shown a lively interest in the possibility of a Tasman customs union.

At each “workshop," the implications of such a customs union were examined, and commented on in the conclusions “We have even got down to case studies—comparing costs and prices of a firm in Australia with a firm in the same industry in New Zealand—which have been of great value both to the businessmen and the economists attending." said Dr Blyth If ever a customs union was seriously contemplated, studies such as these would be very useful in calculating the gams and losses of each country

Asked what conclusions had been reached about a customs union between Australia and New Zealand. Dr Blyth said: “First, adequate compensation must be paid to affected industries such as the Australian dairy industry Also prior agreement must be reached on the appropriate rate of exchange between the two countries.”