Taiboys hint of N.Z. compromise

Press, 5 July 1977, Page 2

Taiboys hint of N.Z. compromise

NZPA staff correspondent f Brussels! New Zealand’s constant, battles for continued access to its vital markets in Europe are becoming more difficult. The Deputy Prime Minister and Minister of Overseas Trade (Mr Taiboys) arrived in Brussels yesterday for yet another round of the European Community’s capitals, and gave a strong caution against over-optunism. “Undoubtedly the situation is changing,” he said. “The tensions within the Community are greater today than they have been in the past I think, quite frankly, it becomes more difficult as we get further away from the original agreement.” He is in Brussels prim-] arily to seek a higher price for dairy products. Costs for New Zealand butter producers have risen 24 per cent, and 28 per cent for cheese producers, since the last price increase granted by the Community — more than 18 months ago.

Mr Taiboys said New Zealand was seeking only to cover costs, but in order to do so, he might have to accept from the Community’s tough negotiators a compromise deal. This might give New Zealand a higher price, but at the cost of lower quotas. Mr Taiboys said no such proposal had yet been made, but it was a possibility. New Zealand accepted a lower 1976 quota in return for its last price rise.

Common Market observers say that Mr Taiboys will not be aware that although there is still a general reservoir of political good will towards New Zealand, certain internal problems and developments within the E.E.C. have not been to New Zea-! land’s advantage. They point to the rela-I tively modest increase given]

to the Community’s tfcvn.i farm producers this year, I and say there is a danger] that New Zealand, through, its special arrangements and| its current application for an ] increase, may become a tar-|< get for the frustrations ofp the main E.E.C. agricultural i countries, particularly Ireland and Denmark. <

One of the aims of Mr Taiboys’ trip is to have the price application dealt with at the agriculture ministers’ meeting in Brussels on July 18 and 19, but he will also have the access of New Zealand Cheddar cheese after the end of this year, and possible sheep meat regulations, to consider. New Zealand is sending 15,000 tonnes of cheese to the United Kingdom in 1977, j but under the terms of Britain’s entry agreement into the E.E.C. this quota is due to fritter away to nothing next year.

Mr Taiboys said he regarded it as vitally important to seek an extension of the special provision on cheese.

However, he was aware of the increasing difficulties New Zealand was having to face.

He is expected to be told that any deal on prices and quotas might work against New Zealand in the long term, and that any deal this year should not take ton-

,na vss below the hard-won I quota of 125,000 tonnes of | butter to the United Kingdom next year. i Taking another trade tack | the Prime Minister (Mr Mulidoon) has linked beef [exports to New Zealand’s defence capability. In a speech at the opening of the new United States

Embassy chancery in Wellington on Sunday, he said with reference to American beef imports: “We press our case on beef strongly with our giant A.N.Z.U.S. partner, because if we are to be militarily strong, relevant to our size, we need the military hardware. “To buy that we must earn more and more from exports, and we entertain the hope that even in the hard, cold world of trade, and the need each country has to protect its own producers, regard can be had to

this extra consideration. The coming A.N.Z.U.S. talks in Wellington would afford an opportunity for “our grateful recognition of

the fact that a great power like the United States is the linchpin of the alliance.” He said too “that under

the leadership of President Carter, progress towards greater social justice will be continued with renewed impetus.”