Fruit levies will hit N.Z. trade

Press, Volume CXI, Issue 32776, 29 November 1971, Page 16

Fruit levies will hit N.Z. trade

X.Z.P..4. Staff Corrcsponaent

LONDON, November 27.

New Zealand’s apple and pear trade with Britain which is worth more than s9m stands in jeopardy if the Government in London proceeds with plans for compensatory import levies during our selling season after Britain joins the Common Market.

The Minister of Agriculture (Mr Carter) expressed his Government’s concern at a meeting with his British counterpart (Mr Prior) and afterwards termed the discussion “satisfactory.”

Fruit trade sources, however, still fear that >n the end the scheme chosen to protect British growers from Continental imports over the five-year transition period will ultimately force the

; southern hemisphere counI tries —New Zealand, Australia and South Africa—into •cut-throat competition which ; will ruin the off-season mar- • ket. The problem arises from the fact that while most agricultural prices within the Common Market are lower than their British equivalents • this is not the case in rhe

-i horticultural field. 5 i In the entry negotiations, 5 Mr Geoffrey Rippon obtained i( terms for horticulture ever > the transitional period which 1 allowed for compensatory > levies. These will be phased - out over the five years while the common external tariff is phased in. The levies are expected to be high at times of direct competition during the northern winter when the bulk of the British crop comes on the market and lower during the off-season when there is no home-grown fruit available. ’ TWO POINTS

The southern hemisphere countries are concerned with two points. First, the size of the levies during the off-sea-son months, and second, the period the higher levies will apply.

There have been suggestions that the high levies—and as much as £2 a bushel has been rumoured—will apply in March. If this is so, South African apple imports would be affected. These would probably be withneld and released in April, which is when New Zealand fruit begins arriving. Thus, the whole finely-bal-anced mechanism would be upset and under the intense competition and the burden of whatever lower compensatory levy was decided upon,

the bottom could drop out of the market. There is also the point that New Zealand, Australian and South African fruit would have to pay a double levy—the British compensatory levy and the common external tariff of the Community over the transition period. The inroads this would make into profit margins is obvious. E.E.C. PRESSURE Finally there is the pressure which will come from the Community to make sure that no special arrangements are made for southern hemisphere countries for relief from the compensatory levy. While southern hemisphere fruit does not compete with the community, it is a point of principle within the Common Market that “outsiders” be given no special advantages and it is certain the six will view any dispensation for Commonwealth countries with the utmost suspicion. The details of the wav in which the compensatory levies will work will be decided over the next few months. It is certain that the New Zealand Apple and Pear Board will urge the New Zealand Government to pay the closest attention to this matter.

I In the major negotiations , over protection for our prim- ; ary produce, apples and pears • were to a certain extent sacI rificed in the interest of ecni centrating on dairy produce . and lamb. Mr Carter’s talks with Mr Prior can be seen as the • opening shot in a campaign • to remind the British of the importance of a fair solution ■ on the problem for New Zea- , land.