Hint of car tariff cut

Press, 26 August 1977, Page 8

Hint of car tariff cut

Mi Adams-Schneider said at the launching of the Subaru that the import tariff on Japanese cars, now 45 per cent, could be reduced if New Zealand won better access to the Japanese market for its products. Japanese vehicles are classified under the “most favoured nation” trade category. In contrast, cars from the United Kingdom are subject to an import tariff of only 6.25 per cent.

The Minister said that when the Minister of Overseas Trade (Mr Taiboys) visits Japan in October, “perhaps we will then be in a position to alter the tariff structure to the further advantage of the most favoured nation cars, of which Japanese cars play such an important part in our assembly industry.”

Lowering the tariffs on Japanese cars would only come through if New Zealand was to achieve better access conditions on the Japanese market. Mr Adams-Schnieder hoped that trade official discussions over the access problem “in the next month or so” will make a great deal of progress. More than 40 per cent of New Zealand’s motor vehicle imports now come from Japan. And in terms of trade. Japan is ahead by SIOOM a year. Pressing New Zealand’s case, the Minister said: “We have proved to be a regular and responsible supplier of beef and dairy products to Japan. But the problem is that this access to the Japanese market is severley limited by the manner in which the Japanese import system is operated. “Tenders for beef and dairy products are issued

by a central authority at irregular intervals,” he said.

“This irregularity, the small quantities involved and the short notice given for delivery make it extremely difficult to plan ahead for the Japanese market. This has a ripple effect throughout the agricultural sector.” He added: “A relatively slight adjustment to the Japanese import system is would enable New Zealand to compete successfully with other suppliers to the Japanese market. We ask no more.”