E.E.C. trade clash looming

Press, Volume CXV, Issue 33773, 20 February 1975, Page 3

E.E.C. trade clash looming

(From

DAVID BARBER.

?, N.Z.P.A. staff correspondent.)

HAMBURG, February 18

j New Zealand’s struggle for survival with the i Common Market is on again, and the next three weeks will see the start of a major diplomatic battie in Europe.

It might turn out to be almost a repeat performance of the tortuous 1971 Luxemburg negotiations which led to Britain entering the E.E.C. with five years of safeguards for New Zealand’s traditional dairy trade.

This time, the' fight will come during renegotiation of the British entry terms, with New Zealand again vitally, but uncomfortably in the limelight as Mr Harold Wilson’s Labour Governmei t tries to rewrite the dairy rules.

All this became clear dur ing a flying, one-night visit by the Prime Minister (Mr Rowling) to Brussels. He arrived there yesterday from London armed with pledges of “a fair go” from the British Government. He left for Germany this morning in no doubt that there is a tough battle ahead if New Zea-

land’s trade is to be protected i beyond 1977. The scene has changed! very quickly since Mr Rowling arrived in London 10| days ago. He indicated today' that he would like person- j ally to spearhead the diplo-] matic offensive by presenting! New Zealand’s case in all nine E.E.C. countries. But, unable to extend his three--1 week European tour, he will concentrate his efforts on Bonn and Paris, influential capitals of the community’s two major powers. He faced an initial setback on arriving in Germany when he learned that Chancellor Helmut Schmidt’s illness would rule out their talks, scheduled for Thursday in Bonn. Mr Schmidt is seen as a good friend of New Zealand, and Mr Rowling had high hopes of gaining an assurance that Germany would take the New Zealand case in the E.E.C. New Zealand’s embassies throughout the Community have been instructed to press home New Zealand's case at all levels in the next few weeks before the E.E.C. summit on March 10 in Dublin. It is understood the Minister of Overseas Trade (Mr Walding), who will arrive in London on Saturday, will be standing by to fly anywhere in Europe to back up the diplomatic efforts.

Although New Zealand has diversified its markets since Britain entered the E.E.C. two years ago, Mr Rowling has stressed in the last week “the crucial importance” of continuing safeguard arrangements.

Britain still takes 65 per cent of New Zealand’s butter exports and 77 per cent of its lamb exports, and Mr Rowling told a Brussels press conference this morning: “the need for substantial

access to the British market has been unquestionable — and will remain so.” He told senior E.E.C. officials at a working dinner last night that New Zealand must have “fully adequate longterm access at remunerative prices for our milk-fat exports.” But he met a stony silence from the Community’s Agricultural Commissioner (Mr Petru Lardinois), who criticised Mr Rowling for going to London and tying up a joint package with the British before coming to Brussels.

In reply, the Prime Minister agreed that a first round of direct consultations between New Zealand and the E.E.C. Commission would be held later this year as the first step toward establishing regular bilateral relations. Mr Rowling also said it was the British who had taken the initiative in including the New Zealand case in their final renegotiation demands, to be presented by the time ot the Dublin summit. This will throw New Zealand’s trading future with Europe right into the controversial heart of, the renegotiations, and may provide I a major clash.

British moves to include cheese — due to be phased out entirely before 1978 — in the new agreement and a new pricing formula with regular reviews are seen by observers as a bid to rewrite Protocol 18, which governs the New Zealand trade. Unless this impression is corrected, there will inevitably be bitter opposition from such countries as France, Ireland, and perhaps the Netherlands. It remains to be seen whether Mr Wilson’s Government is prepared to risk acceptance of its renegotiation package by holding out for all New Zealand’s demands. There is a feeling in some

1 European circles that New Zealand is being used by Mr Wilson. The argument is that he sees his championing of the New Zealand cause as an emotional kith-and-kin issue which if successful could help persuade the British electorate to vote to stay in Europe at the June referendum.