N.Z. resisting beef plan

Press, Volume CXI, Issue 32522, 4 February 1971, Page 3

N.Z. resisting beef plan

(N.Z.P. A.-Reuter—Copyright) WASHINGTON, February 3. Overseas suppliers, particularly Australia and New Zealand, are resisting a United States Government proposal that their 1971 beef shipments to America should not exceed last year’s, according to informed sources in Washington.

As a result, there may be a further long delay before the Nixon Administration is able to announce the level of this year’s beef imports.

Normally the announcement is made at the end of December or within the first two weeks of January. During the last month the issue has been given special consideration by White House advisers.

They were asked to produce a figure that would not fuel the fires of protectionism among domestic producers, but would still be large enough to be anti-inflationary for food prices and at the same time acceptable to overseas trading partners. Views sought The proposals to hold the line at last year’s level are believed to have emerged from the White House last week and were passed on to the supply countries as the basis for establishing individual voluntary restraint supply quotas this year. Of the responses so far received, it is understood that at least the two largest suppliers, Australia and New Zealand, have countered that the suggested 1971 levels are too small. A similar reaction is expected from Latin American suppliers, several of whom have been pressing for a larger share of the United States market to provide an outlet for their expanding cattle industry. They argue that much of that expansion has evolved from development loans provided by the United States. During 1970 total United States imports of the quota meat—mostly beef—amounted to nearly 1150 m lb. Australia provided nearly

150 per cent, New Zealand just over 20 per cent, and the rest was shared by Mexico, Ireland, Canada, Nicaragua, Costa Rica, Guatemala, Honduras, Dominican Republic, Panama, Northern Ireland, and Haiti, in that order. Possible cuts

The likelihood of the Nixon Administration giving way and raising the 1971 quota is considered slim. American cattlemen were upset last year when President Nixon permitted a midyear increase in imports which pushed the 1970 total above the levels initially agreed, and more than 80m lb above the 1969 level. On the other hand, some observers in Washington believe there is a good chance that failure to reach agreement on the suggested volun-tary-restraint levels with foreign suppliers could force the introduction of mandatory quotas.

Such quotas, by dint of pressure from the domestic industry, almost certainly would result in reduced imports.