'N.Z. Safeguards In Trade Pact’

Press, Volume CIV, Issue 30830, 16 August 1965, Page 1

' N.Z. Safeguards In Trade Pact’

(New Zealand Press Association)

WELLINGTON, August 15.

Not only were New Zealand’s industries adequately safeguarded, but her forest products earnings could be up to £3O million in 10 years under the limited free trade agreement just negotiated with Australia, the Minister of Overseas Trade (Mr Marshall) said vesterdav.

Newsprint and finished products would be the mainstay* of the country’s forestry trade, he said.

“It is very much in our interests we should manufacture in depth, and in the forest industry carry on manufacturing processes through to the finished product rather than export pulp for someone else to manufacture,” he said.

The Minister said one of the important passages—not previously contemplated—in the agreement was the establishment of a Forestry Products Consultative Council. “Government and industry tn Australia and New Zealand will consult together with a view to using forest resources of both countries to the best advantage," Mr Marshall said. He gave the following assurances: The agreement would not cause unemployment, but would boost manufacturing industries and thereby create new opportunities for employment.

There might be a shifting of trade, but no disruption. Immediate benefits would be small, but in five or 10 .'ears New Zealand would

find its trade increasing by 7 millions of pounds. The agreement had no secret clauses. Mr Marshall returned to Wellington after four days of negotiations in Canberra with I the Australian Minister for Trade (Mr McEwen).

Beyond Expectations j “We have succeeded beyond , our expectations and up to pur hopes.” he said. Asked how the agreement I might affect New Zealand's ; trade with other countries, iMr Marshall replied: “It may jbe at the expense of other Commonwealth countries if they are not able to compete. But Australia should get the advantage of expansion of trade just as New Zealand will.

“The agreement won't lead to any disruption of trade, but it may lead to some shifting of trade. This is a natural development.”

Questioned on Opposition charges that the agreement would lead to increased unemployment, the Minister said: 'On the contrary, the boost it will give to the manufacturing industries will help to create opportunities for employment.”

Australia had been prepared to be helpful in achieving an approach to balanced trade, and the agreement contained “certainly adequate safeguards" to protect New Zealand industry. In the communique issued on Friday, the Ministers said the Australian Government was prepared to indicate quantitative restrictions would i not be imposed on imports, i The New Zealand GovernI ment had not given the same assurance in respect to imports from Australia. Mr Marshall said, because of New Zealand manufacturing and because of the import licensing system. Immediate Benefits "The immediate benefits will be small, but in five or 10 years we will find our trade increasing by millions of pounds. I should be cautious in fixing specific values in trade. I’m very confident there will be an increase in value, but much will depend on how our industries take advantage of the opportunities open to them now.

“We have created the opportunity—what must be done now is to take advantage of it. Tm sure we will, and to the extent we do, our prosperity will be increased.”

Mr Marshall declined to specify those items which would always be excluded from the arrangement. Exclusion of basic industries that provided food, clothing and shelter for people was common in trade generally, he said.

‘The clothing and footwear industries are not likely to be included, now or in the future —but no-one can tell what the future will hold.” Mr Marshall said he would release details of the agreement to Parliament on Tuesday when a general indication of the commodity coverage would be given. Approval from the General Agreement on Tariffs and Trade would be sought as soon as the agreement had been ratified by both Governments. “I have reasonable grounds to expect G.A.T.T. will approve it, but if not. 1 expect them to agree to a waiver of strict rules.” he said.

There would be consultation in the event of any matter arising under the agreement, and review at regular intervals annually. The agreement included a special provision to deal with dumping and with subsidised exports.