U.S. predicts joint stand on tariffs

Press, Volume CXVI, Issue 34129, 15 April 1976, Page 3

U.S. predicts joint stand on tariffs

f By

CEDRIC MENTIPLAY,

our Parliamentary reporter)

WELLINGTON, April 14. New Zealand and the United States would be partners at the coming conference on the General Agreement of Tariff and Trade, the United States :Secretary of Agriculture (Mr E. L. Butz) forecast today.

Air Butz, who wasi speaking after a morn-! ing spent in discussions! [with the Acting Prime [Minister (Mr Taihoys),; ■ the Minister of Agricul-! ture (Mr Maclntyre),; ;and the representatives! !of agricultural bodies, .said that the two countries thought alike on; [many things. i The partnership would be' 1 aimed at the reduction iff I tariff barriers against priimary products. [ At the Government luncheon (accorded him today, and at |a press conference afterwards, Mr Butz made the following points: The United States is a large potential market for Zealand lamb, basically because its own sheep flocks are diminishing, but the American preference is for a larger, more mature lamb, which New Zealand could supply. The United States has kept I the door open for New Zealand beef. par- [ ticularly manufacturing beef — while Europe I “closed the door and I put a couple of nails in, (Within four or five years >

i “people will be buying any foodstuffs availI able.” because world affluence is rising, and the first thing you do when you have more i money is buy more food.” (There is a good United States 1 market for New Zealand cheese—“if New Zealand forgets about Cheddar and concentrates on the [ fancy types.” He said that much of the cheese [ in this category, which was outside the quota, was provided by Euro- ! pean countries. 'To help open doors, New Zealand might well I admit a small quantity of "fed beef”—a special grade which commands high prices and is prized by the hotel trade. Beef priees Mr Butz told Mr Taiboys that American beef prices [would probably rise next I year, the Press Association (reports. He believed the prices [would firm in the next few [years, and he expected the [rise to become apparent I during 1977. ! Mr Taiboys said after the 175-minute meeting that Mr Butz also believed New ZeaHand could sell much more [lamb in America. I Mr Butz indicated that lthe United States would be prepared to put its dairyquota restrictions on the “negotiating table” in the Tokyo round of trade negotiations now being held under the auspices of G.A.T.T.

However, at the official I luncheon later Mr Butz made'i it clear the United States'' would not liberalise its dairy ” import restrictions without!; receiving adequate returns. [■ “We are not going to give; them away except for a re- ■ turn benefit and under con- 1 ditions of fully fair com- [ petition.” Dairy surpluses He said America was concerned about the surplus of dairy products on world markets. particularly of skim-milk powder. “Our own commodity credit corporation owns nonfat dry milk stocks (skimmilk powder) of about 200,000 tons. The E.E.C. has enormous stocks, of 1.2 m i tons.” In discussions with representatives of Federated , Farmers Mr Butz urged investigation of the prospects of exporting specialty 1 cheeses to America. ; Mr J. T. Kneebone, president of Federated Farmers, said Mi Butz had said that if the dairy industry did “retool” to develop specialty cheese sales on the United States market there would not be any danger of Amer-L ica’s restricting sales. Mr Butz said at the lunch- , eon that although the United States cattle industry! seemed to be heading back ' to a period of recovery, farmers’ livestock inventories remained high, and cattlemen faced many uncer- , tainties. “Dry weather in the Southern Great Plains has been a factor in the high level of cow slaughter and( some forced marketings of; feeder cattle this year.' Range and pasture conditions in late spring and!

1 early summer, along with I this year's feed grain cro ; [will have a lot to do .vi’h how much recovery we can [expect in cattle prices this [year.” He was aware New ZeaHand wanted the United i States duty on wool eliminated during the G.A.T.T. [negotiations. and America was prepared to enter into negotiations on the question. Producer reaction The Meat Board and Dairy Board tonight appeared to be regarding comments made, by Mr Butz as “something of a familiar refrain.” The chairman of the Meat Board (Mr Charles Hilgeni dorf) said a long-term problem in development of the United States lamb market had been that good returns [ had simply not been there (during rhe first 12 years of ■development. In that period each lamb sold in America had cost New Zealand a dol- [ lar. [ However, the board was [still trying to build up the market. Dairy Board sources said [ about two-thirds of the [cheese New Zealand exported to the United (States was other than ched- [ dar. It was not in the interests (of producers to begin a (multi-million dollar promotional campaign to build up a market for specialty [cheeses when America’s import regulations could be [changed at any time to re(strict the trade. t Mr Butz will leave fori [Canberra tomorrow morning.

Rugby.—Tlie Australian rugbyi halfback. Rod Hauser. hasi announced that he will not be available for the Queensland; [side’s tour of New Zealand in July. Hauser, a teacher, said the; (tour would not be fair on his i pupils. I