U.S. MAY CURB DAIRY IMPORTS

Press, Volume CVI, Issue 31333, 1 April 1967, Page 1

U.S. MAY CURB DAIRY IMPORTS

Moves To Protect N.Z. Access

(New Zealand Press Association) WELLINGTON, March 31. ’ The Prime Minister (Mr Holyoake) said today he would emphasise the need for access to the United States market for New Zealand dairy products when he was in Washington next month. Commenting on a report that the United States Secretary of Agriculture (Mr Orville Freeman) had recommended to President Johnson a one-third reduction in dairy imports, he said:

“I will see President Johnson while in Washington next month and I will certainly press upon him the need for access to the United States market for New Zealand dairy products.”

He understood that the Tariff Commission would investigate the dairy import situation. The Minister of Overseas Trade (Mr Marshall) said today: “An intensification of Import restrictions could have serious implications for New Zealand’s trade in dairy products with the United States. “For this reason the Government has been keeping in elose touch with developments through the New Zealand Embassy in Washington and has had a number of consultations with the Dairy Board.” Mr Marshall said a Note was recently presented to the State Department in Washington setting out New Zealand's views. “The Government has been aware for some time of the growing pressure within the United States for intensified import restrictions on dairy products," he said.

Mr Marshall said he found it difficult to believe that the United States authorities would want to reduce dairy produce imports by one-third at a time when the trading nations were looking to the Kennedy Round of trade negotiations in Geneva for a greater measure of trade liberalisation. To Be Represented The proposed Tariff Commission hearing would enable all interested parties to have their views considered. “As soon as I have received the report on latest developments from Washington, I propose to have discussions with the Dairy Board on how New Zealand’s interests might best be protected,” he said. The Dairy Board would certainly be represented at any Tariff Commission hearing on restriction of dairy imports into the United States, said the chairman of the board, Sir Andrew Linton, today.

Sir Andrew Linton said that the board would retain top Washington legal advisers for any hearing by the Tariff Commission.

“We have heard rumours that the United States admini istration is very concerned about the influx of dairy produce,” said Sir Andrew Linton. “I understand that a measure—the Proxmire Bill—is coming before the Senate on the issue.” Sir Andrew Linton said that the board would ask the Government for all assistance in making representations against the restriction of dairy produce into the United States. “Access to the United States market is of vital importance to us. We have a clean slate on this. “We don’t subsidise our products like Continental countries do. They are using the United States as a dumping ground. That is what has really brought this matter to a head,” he said. Curbs Advised An N.Z.PA.-Reuter report from Washington said that the Secretary of Agriculture had recommended action to reduce dairy imports by about a third. Countries which would be affected by new import regulations would be New Zealand and Australia as major cheese exporters, and Denmark, Holland and Belgium as major butterfat suppliers. Officials said the White House had accepted the request from the Agriculture Department and would now instruct the Tariff Commission to investigate the situation and make recommendations. In his announcement, Mr Freeman said he had recommended that President Johnson direct the Tariff Commission to investigate import quotas on certain dairy products not now subject to quotas.

Quota Evasion He said there had been a 300 per cent increase in dairy imports, which was largely accomplished through evasion of the present limits. Imports in 1966 had totalled 2700 million pounds of milk equivalent as compared with about 900 million pounds in 1965. There have been quotas on products such as cheddar cheese. But, to overcome these existing import controls, suppliers have been shipping various forms of processed cheese and ice cream-making mixtures containing dairy produce outside the control limits of the quotas. Mr Freeman said the increased imports had had an adverse effect on the United States price support programme and would hold down the income of American dairy farmers.