Duty Suspension With E.F.T.A. Move

Press, Volume CII, Issue 30129, 13 May 1963, Page 14

Duty Suspension With E.F.T.A. Move

(N.Z.P.A. Reuter —Copyright) LONDON, May 11. The suspension of the tariff on butter imports to the United Kingdom will come into effect only if members of the European Free Trade Association, now meeting in Lisbon, accelerate their timetable for the reduction of itariffs with E.F.T.A. It is expected that the New Zealand Deputv-Prime Minister (Mr Marshall) will formally sign the agreement on the duty removal with the Secretary of State for Commonwealth Relations (Mr Sandys) next week.

“This agreement is of real value to New Zealand,” said Mr Marshall, who has taken part in the negotiations in London, according to the New Zealand Press Association special correspondent “It gives a greater sense of security and continuity to our butter exports to the United Kingdom “Until now. quotas had been in force only until March 31. 1964. “The British Government has now clearly and firmly declared its intention to continue quotas for what I interpret to mean an indefinite period—which is likely to be a long time. ‘‘lt should be understood, however, that no definite term is fixed and that the quantities of butter may vary from time to time,” he said. “Compared with the uncertainty which surrounded our trade in the last year or two the present arrangement gives us a much firmer basis for long-term trade and development.’ ’ “Better Position" The Australian Minister for Trade (Mr McEwen) in London tonight said the agreement placed Australian exporters in a better position. A.A.P. reported. The regulation of supplies to the British market by a system of country quotas based on traditional shares and the removal of the threat

of predatory dumping by competitors placed Australian exporters in a better position than when they had to rely merely on a fixed preference of 15s a hundredweight in a market which experience had shown would be thoroughly unsatisfactory, he said. “The Australian Government has therefore agreed that the preference can be suspended for so long as Import arrangements of the type now in force continue to operate,” Mr McEwen said. The assurance that there would be no reduction of the present Australian tonnage or in the proportionate share of Australian butter in the over-all quota would provide a further protection to Australian producers. he said. Mr McEwen said: "I place considerable value on the undertaking by the British Government to maintain its policy of not encouraging the expansion of milk production in Britain for manufacturing purposes” He said the Australian Government was confident that the assurances given bv Britain would enable the maintenance of a more rea sonable and stable market tor Australian butter "he Australian Government had consulted closely with the New Zealand Government during the negotiations, Mr McEwen said.