THE PRESS TUESDAY, FEBRUARY 22, 1977. Tasman trade in clothing...

Press, 22 February 1977, Page 16

THE PRESS TUESDAY, FEBRUARY 22, 1977. Tasman trade in clothing...

The substantial cuts made by Australia in its import quotas for textiles and apparel do not affect New Zealand, which is not under the Australian world quota system But the cuts hint that, when New Zealand and Australian officials meet on February 28 to discuss textile and other Tasman trade, the bargaining will be tough.

The Australian Government is obviously acting to protect its clothing manufacturers and to relieve unemployment. About 400,000 people are unemployed in Australia. Imports of cheaper Asian clothing hit hard at Australian manufacturers, even after import quotas were imposed, and many Australians lost their jobs in the clothing industry. While Australian manufacturers were losing business to Asian imports, dramatic increases in New Zealand exports of clothing challenged them in the market for higherpriced garments At the same time. Australian manufacturers were unable to take more than the thinnest slice of the New Zealand market because of New Zealand’s import licensing restrictions

The Australian Government has come under increasing pressure from the domestic clothing manufacturers either to include New Zealand clothing among its world quotas or to persuade New Zealand to increase the volume of licensed imports. Australia has also faced criticism from Asia because New

Zealand can sell clothing in Australia without restriction.

The Australian decision to cut imports was made after consideration of a report by the Industries Assistance Commission. Regardless of whether the report contains any recommendation about New Zealand, the talks at the end of the month are likely to be difficult. Negotiators for New Zealand’s Department of Trade and Industry face strong pressures from New Zealand manufacturers not to open New Zealand’s market more widely. But the officials have the whole of New Zealand’s trade with Australia to consider. Because New Zealand is committed to an export drive, any restriction imposed by Australia will be avoided, if possible. Manufacturers, who cannot have it both ways, may find themselves under pressure' from the Government to accept the challenge of permitting greater quantities of Australian clothing to reach the New Zealand market. If employees and manufacturers here have confidence in their efficiency and capabilities, they will not object to the challenge. On balance, they might still have more to gain by preserving their Australian market and by letting the consumer decide whether Australian imports are good value. Import restrictions may limit the opportunities of consumers to buy what they would like. The relaxing of restrictions does not compel people to buy what they do not want.