Same beef ‘quota’ likely for N.Z.

Press, Volume CXVI, Issue 34048, 12 January 1976, Page 2

Same beef ‘quota’ likely for N.Z.

fVZ P .4 Staff Lnrmpotidfut l W ASHINGTON, January 11. Ne'v Zealand trade officials in Washington are still awaiting word from the State Department on how much beef the United States is prepared to accept from i New Zealand this year.

They say that there has been no formal approach yet from the Americans on the question of access to the United States market in 1976. The American position, however, is expected to be put to New Zealand soon, possibly next week. Official United States sources sac that New Zealand will be offered essentially the same as the 1975 imports — 262.5 million pounds. The last official statement on meat imports was made on December 31 bv the Secretary of Agriculture (Mr Earl L. Butz) who said the State Department was negotiating voluntary restraint arrangements with supplying countries. Restraint agreements were signed by New Zealand. Australia. and other exporters last year to keep imports below the level which would have led to the imposition of quotas. New Zealand and other suppliers agreed, reluctantly, to the restraints in 1975. but New Zealand believes that the United States market in 1976 will be much stronger. ft is expected to argue this point strongly when negotiations begin after the Americans have outlined what they have in mind. Complicating factors The question of imports is complicated this year by a number of factors, including the state of the market, the resumption of greater supplies from Canada, and the probable exclusion of the Irish Republic as a source. New Zealand thinks that shortages of beef will develop in the United States this year, that prices will rise, and that higher imports should be allowed. However. Mr Butz said at the end of the year that cattle numbers in the main exporting countries had in- < reased significantly during recent years. •"With other ma tor world markets continuing to be restricted, increased exports

’tr<>m major supplying countries could further affect United States beef producers, resulting in disruption of; United States beef supplies in future years,” he said. (lanadian supplies Because of trade disputes between the United States and Canada. Canadian beef imports were restricted in 1975 to about 20m lb. However, the countries reached agreement on the beef trade in late December. Canada will have free access to the American market again, and according to official Washington sources is expected to export about 70m lb to the United States in ; 1976. The higher Canadian imports will swallow up the entire 50m lb increase in total imports projected by the United States this year. Base quantity The higher total figure is the result of an increased adjusted base quantity, which in turn reflects greater United States production. The adjusted base quantity for 1976. already announced, is 1120.9 m lb. and the level at which quotas will come ■into force is 1233 m lb, or 110 per cent of the base. Last year the base was 1074.3 m lb and the trigger level 1181.7 m lb. The United States set import levels at 1180 m lb. just below the trigger point, and permitted imports are expected to be set for 1976 somewhere between 1220 m and 1230 m lb. N.Z.’g share New Zealand’s 22 per cent share of the market last year was 262.5 m lb. but this included an additional 9.7 m lb awarded in September because of a shortfall in supplies from Mexico and the Irish Republic. Australia gets 50 per cent of imports, with the remainder shared by Mexico and Central American nations. The United States has told the Irish Republic that if it continues shipping subsidised

beef, countervailing duties will be imposed. The subsidies were applied) in the last quarter of 1976. and domestic United States producers appealed to the Government for action. Official United States sources say that because un-’ subsidised Irish meat is not; competitive in the United States. Ireland is unlikely to ship anv this year. Thus its 1975 “quota” of 38m lb will be shared out among other suppliers in 1976. New Zealand therefore will gain a little, and the Ameri-i cans say it will be offered about the same level of imports it supplied last year.