Pacific bilateral trade urged

Press, Volume CXI, Issue 32665, 22 July 1971, Page 16

Pacific bilateral trade urged

(New Zealand Press Association)

AUCKLAND, July 21.

The Leader of the Opposition (Mr Kirk) today urged greater adoption by New Zealand of bilateral trading in the Pacific.

Speaking at an Auckland Chamber of Commerce lunch, Mr Kirk said there was great trade potential in the area, but he dismissed suggestions for a free trade area.

“If a regional free trade area is not a feasible proposition, other approaches must be made to develop more fully the Pacific Basin’s trade potential,” said Mr Kirk. He gave a warning that there would probably be less tariff-cutting throughout the world. Instead, there was a

. grave danger of protection- . ism in the United States and ’ other places if Europe ex- : tended its area of protected t trade. . DUMPING RISK i New Zealand needed to develop new trading arrange1 ments because a surplus of agricultural products displaced from the British mar-

PK ket, would create a potential for dumping in Pacific markets. "In the past and, indeed, if we have a say in the matter, in the future, multilateral trading would be both our preference and the most beneficial,” said Mr Kirk. “But we don’t have that

choice, and so I believe that I within the region we must, to a degree not thought of in the past, tackle trade development through bilateral arrangements.” Mr Kirk said New Zealand needed to come to terms with Australia on temporarily redundant export dairy production in that country. By bilateral bargaining he did not mean just trading a cut in tariffs on one product here for a cut in tariffs on another product there, but bargaining with the offer of tariff preferences in the New Zealand market for the removal of non-tariff trade barriers, such as quotas, in return. JOINT ACTION Mr Kirk said the time had come for the development of a partnership between business and the Government to face a future of flexible—as opposed to assured—trade prospects.

Referring again to bilateralism, he said that this could cover the organisation of much needed sea transport in the South Pacific and in the Asian and North American area.

“There is no reason why a joint venture should not be used to bring Taranaki ironsands and natural gas together for the development of a more highly processed and valuable export. "There is no reason why a bilateral approach should not be attempted to establish a joint United States-New Zealand beef board,” said Mr Kirk, explaining that winter production of beef in the United States cost the American farmer money. U.K. VITAL Mr Kirk reminded those who frowned on bilateralism that the most enduring market for New Zealand’s agricultural products was in the United Kingdom. The maintenance of this was assured under a series of bilateral arrangements. "There is no doubt of the trade potential in the Pacific Basin, but it needs to be cultivated, developed and pursued,” he said.

“New Zealand, if it approaches this quest with the vigour and enterprise that it should, can reap a considerable reward.”