TASMAN CUSTOMS UNION N.Z. Manufacturing Concession Sought

Press, Volume CIII, Issue 30487, 8 July 1964, Page 17

TASMAN CUSTOMS UNION N.Z. Manufacturing Concession Sought

(From Graeme Jenkins, N.Z.P.A. Australian Correspondent)

SYDNEY, July 7.

Original plans for a free trade area covering New Zealand and Australia have been greatly expanded according to Australian trade officials in Canberra.

A report prepared by officials of both countries, and soon to be studied by the New Zealand and Federal Australian cabinets, is understood to suggest an agreement whereby New Zealand manufacturers could gear their industries to fit in with Australian production.

Australian and New Zealand officials have been studying the proposals for more than 12 months with meetings being held alternately in Wellington and Canberra.

At the time the joint committee of officials was set up, the New Zealand Minister for Trade, Mr Marshall, and his Australian counterpart, Mr McEwen, said a comprehensive free trade area between the two countries was not practicable because a high proportion of trans-Tasman trade already was free of duty and both countries wished to exclude certain commodities from the study.

The report is to suggest that New Zealand could supply component parts for products made in Australia and also that Australia should formally agree to importing free of duty New Zealand primary produce to make up local scarcities, says the “Canberra Times.” Committee Instructed

The basis of the study was the request of the governments to the committee to prepare “proposals, for consideration by governments for a free-trade area in forest products and other items suitable for inclusion in a free trade arrangement either from the outset or subsequently.” According to the “Can-

berra Times,” the Australian Government is likely to await the outcome of New Zealand’s consideration of the report before it considers it itself. Reaction Wanted

“Australia is anxious to gauge the New Zealand reaction to gearing some of its industry to Australian industry which appears to be the only way New Zealand can hope for a rise in manufactured exports to Australia,” says the newspaper.

Ministerial talks which were scheduled for Canberra are now likely to be held in Wellington with Mr McEwen flying across for them, it said. Australian exports to New Zealand are now running at about £A6O million a year with imports from New Zealand being about £AIS million. G.A.T.T. Approval Once the governments decide on the committee’s report, any agreement will have to go to member countries of the General Agreement on Tariffs and Trade for their sanction. One of the conditions for such sanction is that the agreement covers a majority of trade between the two countries.

New Zealand trade officials previously have said a significant correction to the present imbalance in trade would mean Australia taking more primary products, and although New Zealand did not envisage a large increase it advocated more than at present.