Britain And E.E.C. “N.Z.’s Position May Not Be Fully Understood”

Press, Volume CVI, Issue 31235, 6 December 1966, Page 1

Britain And E.E.C. “N.Z.’s Position May Not Be Fully Understood”

f.Vew Zealand Press Association* WELLINGTON, December 5. I here is no assurance that New Zealand’s trading position is adequately understood in Britain and Europe, nor is there any evidence that New Zealand will win special conditions which would enable its trade to be maintained, says the “New Zealand Meat Producer.”

“Such special conditions would be in conflict with the common agricultural policy as now established by the European Economic Community. “ The British Government has given positive assurance hat it will seek special conditions affecting her Commonwealth trade, particularly the trade with New Zealand.

“It has yet to be seen, however, whether these conditions will be available, and, indeed, whether Britain will achieve admission to the E.E.C.

“Obviously this is the major issue confronting the new Government of New Zealand. The Government will require the full understanding and support of all New Zealanders in this matter,” says the article. “It is not enough to say New Zealand will have to find markets elsewhere. New Zealand has been doing this with some outstanding results. “But to propose to put a ring around one of the largest meat-marketing areas in the •world and restrict the flow of our produce into it is, to use words once used by a New Zealand Minister, to give New Zealand a ‘suspended death sentence.’ ”

The article says the first and over-riding responsibility of the incoming Government is to pursue New Zealand’s interest with the utmost vigour in negotiations involved in Britain’s approach to the EEC. “There is no indication yet that Britain can hope to join the E.E.C. without full acceptance of the Rome Treaty and the common agricultural policy. “The common agricultural

policy involves sharp restraints in imports of meat and dairy produce. Its effect on the New Zealand export trade is already severe. “Not only is trade into the E.E.C. countries restricted, but also the produce of other countries is being diverted from European markets to those in which New Zealand competes to sell her gooi’s. Prices are already being depressed.

| “‘Furthermore, the common agricultural policy provides for levies on imports, to go to a common agricultural fund which will finance aids to greater production and subsidies to E.E.C. agricultural exports. “There has been much work done by many people to bring public attention in New Zealand and Britain to these issues. New Zealand has gained recognition in Britain and to some extent in Europe, of the special problems of New Zealand, particularly should Britain enter the E.E.C. “It is still not generally re-

cognised that New Zealand lives almost wholly on the produce of two animals—the sheep and the cattle beast whether raised for beef or dairy produce. “To put up rigid barriers to the development of trade in these products to Europe and Britain would inevitably reduce for New Zealand a large slice of the world market for her products. And not only farmers, but everyone in New Zealand has his livelihood at stake. “For the housewives of Europe and Britain—if she joins E.E.C.—the prospect is one of high and increasing food prices, while high-quality, inexpensive produce, which New Zealand farmers are so well placed and able to provide, has barriers raised against it.

“Everyone knows that Britain will continue to be a substantial importer of meat and dairy produce, but a large part of the market in Britain in the future would inevitaably go to New Zealand’s competitors under the common agricultural policy of the E.E.C. “Price levels established within the E.E.C. are designed to sustain and promote production, but must inevitably bear heavily on the consumer and, while increasing farm output, will restrain the rate of growth of demand.”