New Zealand lamb on the British market

Press, Volume CXV, Issue 33964, 3 October 1975, Page 8

New Zealand lamb on the British market

Concern about the access of New Zealand dairy products to the British market has dominated discussion of what Britain’s membership of the European Economic Community means for New Zealand producers. But the market for frozen lamb is also threatened by the increasing effect of Britain’s membership of the Community. At the beginning of next year the tariff on imports of New Zealand lamb into Great Britain is due to increase from 12 per cent to 16 per cent The tariff will rise later to 20 per cent. Britain still buys about 70 per cent of New Zealand’s lamb exports so that these increases in the tariff will significantly reduce the returns from the sale of lamb in Britain to New Zealand and to New Zealand sheepfarmers. The Minister of Overseas Trade (Mr Walding) struck an optimistic note about the tariff on lamb on his return from Europe recently. He suggested that the increase due in January might be deferred and the tariff later reduced from its present 12 per cent. Later reports from Brussels suggest that the chances of a postponement of the increase, let alone its complete waiver are not high. New Zealand will have to wait, even to have its case presented by the British, until the Ministers of Agriculture of the E.E.C. countries turn their attention to sheepmeat. They are unlikely to do this in the near future while problems that are much more important to E.E.C. members have to be resolved. Even then, New Zealand will have to continue to make strenuous efforts on its own behalf to ensure that its interests are not ignored. Britain cannot be expected to rock the Common Market boat too much on New Zealand’s behalf. Any increase in the levy on lamb will have to be absorbed by New Zealand producers for New’ Zealand lamb to remain competitive in the British market. Britain’s only real interest in keeping the tariff on New Zealand lamb low stems from the possibility that a high levy, when the world demand for meat improves, would encourage New Zealand producers to seek more profitable markets elsewhere. This would upset the continuity of Britain’s supply of lamb. So New Zealand has some reason for hope that the British Government will honour its undertaking to Mr Walding and press strongly in the councils of the E.E.C. to have the increase in the tariff deferred or waived.