Mr Talboys wary of E.E.C. lamb ‘deal’

Press, 6 March 1978, Page 1

Mr Talboys wary of E.E.C. lamb ‘deal’

From JOHN ROSS in London Common Market officials in Brussels believe the draft proposal on sheepmeat imports, which is now before the 13-man European Commission, will give New Zealand the best deal possible. But the Minister of Overseas Trade (Mr Talboys), who arrived in Brussels last evening for talks

with European commissioners, will be wary of such claims. The General Agreement on Tariffs and Trade provides safeguards on tariff levels, arid if the Common Market decided to try to increase the tariff, it would have to negotiate with the New Zealand Government, and pay it substantial compensation. The commission has indicated that the import tariff is likely to be replaced by variable Common Market levies, with a maximum levy of 20 per cent. Mr Taiboys will be anxious to find out what sort of sliding scale is proposed, and to ensure that the maximum levy remains just that. Common Market officials have admitted that the biggest problem in trying to draw up a universally acceptable policy is the huge difference in lamb prices between Britain and France. The draft document suggests that in France, where lamb is about twice the price it is in Britain, pro-

ducers should be paid a premTlim to bridge the gap. This would, however, be phased out within four years. New Zealand is worried about the inevitability of lamb prices in Britain rising once a common regime is introduced, but commission sources in Brussels say that these fears have been overplayed. Lamb prices, they say would end up somewhere between the British and French prices, but probably nearer to the lower British price. One official said he thought that the very severe winter in Britain would affect British lamb prices much more than any fluctuations resulting from French price levels. The commission says that a safeguard clause will be included in the regulation, reserving the right of the Community to introduce additional controls should the need arise. That is a clause New Zealand will want to examine very carefully.