U.S. QUOTA SYSTEM

Press, Volume CIX, Issue 32232, 26 February 1970, Page 22

U.S. QUOTA SYSTEM

Attack By Mr Marshall (N.Z Press Association —Copyright) WELLINGTON, February 25. The United States market for New Zealand’s major products was still uncertain, the Minister of Overseas Trade (Mr Marshall) said tonight at the annual meeting of the American Trade Association of New Zealand.

“If our trade is to flourish. the United States must allow freer access for greater quantities of New Zealand products,” he said.

The demand for New Zealand goods certainly existed among American consumers, he said. If the restrictions were lifted New Zealand could double its exports to the United States, but would still be unable to satisfy the demand “However, yielding to pressure from sectional groups, the authorities in the United States have imposed a panoply of quotas and other defensive measures on dairy products and beef “These act to the detriment not only of exporting countries but, I believe, of the majority of people in the United States of America." I Mr Marshall gave as an example of his reasoning the 1964 Meat Act. which set trigger levels for mandatory import quotas and gave rise to a “reluctant agreement” by major suppliers to voluntary restraints.

“And yet it Is clear that the restraint level does not allow for the satisfaction of the internal demand, and that imports can in no way be regarded as a severe threat to the domestic beef industry.” A similar tale could be told about dairy products, he said. New Zealand had opposed the granting of an openended waiver to the United States regarding import restrictions at the G.A.T.T. talks in 1955

Although the waiver had been granted to allow the United States time to solve its surplus problems, 15 years later the quotas remained and now, once again, Mr Marshall gathered. Wisconsin cheese producers were questioning some of New Zealand’s exports under the approved quota. “Thus, while both countries have much yet to do to ex-

pand and enrich their manyfaceted partnership, in the commercial sphere I believe the United States, as the economically stronger partner, must be prepared to make a special effort to counteract the protectionist devices, both actual and threatened, restricting imports of New Zealand dairy products and beef." Mr Marshall said there was an increasing tendency for American firms to export to New Zealand from branches in Canada. Australia and Hong Kong to obtain, quite legitimately, more favourable rates of duty. “In openly calling for grea ter access to the United States market I do not wish to create the impression that New Zealand is trying to get something for nothing. We long ago made it clear in Washington that we were not in the queue for aid, but that we could fend for ourselves if allowed to trade," he said. New Zealand had spent millions of dollars developing the North American market for lamb, and only now was this expenditure showing signs of paying off.