N. Z. May Propose Dairy Group

Press, Volume CII, Issue 30133, 17 May 1963, Page 11

N. Z. May Propose Dairy Group

th Z Pre** Auoetatton—Copy nah t> LONDON, May 16. New Zealand might propose the establishment of a G.A.T.T. dairy produce group during the G.A.T.T. conference in Geneva, the “Financial Times” said today. The paper’s diplomatic correspondent said the New Zealand plan was subject to other countries’ reactions. The purpose of the group—which would be analogous to the existing meat and cereals groups—would be to work towards an international commodity agreement in dairy produce.

The correspondent said any such agreement, in New Zealand’s view, would be designed to give dairy produce exporters better access to markets which are now restricted.

It would also have to tackle the surplus disposal problem And it would cover products —like processed milk—as well as more traditional dairy items. In the meantime ft now seemed clear that in any in-‘-.T-’tional meat negotiations the New Zealanders are not necessarily going to “sit tight” on the letter of their rights under their present trade agreement with Britain, the correspondent said. This agreement gave New Zealand unlimited and dutyfree access to their meat exports to Britain.

‘‘Although New Zealand Government members might be reluctant to say so much publicly, especially in an election year, It seems probable that they regard these rights as negotiable,” he wrote. “Presumably In any inter-i-ational meat agreement, which may or may not be negotiated, the New Zealanders would be guaranteed a specified share of the United Kingdom market and presumably, also, there would have to be a specified minimum price.

“Of course, they would be likely to ask for even more than this. Ideally they would probably wanl an arrangement in which their guaranteed level of meat exports to the United Kingdom could be increased should their outlets in other markets be suddenly curtailed." he said. Reuter quoted the New Zealand deputy Prime Minister’ (Mr Marshall) as saying

in Geneva yesterday that the G.A.T.T. talks could be a turning point in New Zealand’s bids to secure outlets tor her farm products. He said he hoped the conference would result in the breaking down of non-tariff barriers to agricultural trade "We would regard improved access as a condition precedent to tariff cuts," he said If a start could be made to opening up markets it would do much to help New Zeal.nd in her present predicament.

The Australian Trade Minister (Mr McEwen) said yesterday it appeared the “game was up” for Commonwealth preferences, the “Daily Express” reported.

The newspaper, in a report from Geneva, said Commonwealth Ministers were “bitter and resentful” about the line Britain would take at the talks.

Asked what he thought of British support for the American 50 per cent, tariff cut proposal, Mr McEwen, said; “That will make many of our preferences useless " A “Daily Mail" editorial said it was already clear that

lor Australia and New Zealand part of any deal was bound to be a lowering of imperial preferences—which would hurt. A major aim of the G ATT conference will be to avert the danger that Britain’s failure to join the Common Market will lead to a cold war over trade in Western Europe. It is hoped the conference will “ive Impetus to a general world movemen' for lower tariffs.

A G AT T, spokesman said the Ministers would take up the three agenda items in the following order: I Measures for the expansion of trade of developing countries as a means of furthering their economic development. 2. Arrangements for the reduction or elimination of tariffs and other trade barriers. 3, Measures for access to markets for agricultural and other primary pro-* ducts

The conference will continue until next Tuesday night when a communique will be issued.