N.A.F.T.A. breach?

Press, 8 April 1978, Page 17

N.A.F.T.A. breach?

NZPA Canberra ' Australia's Deputy Prime ■ Minister (Mr Anthony) ■ expressed concern about ■ proposed tariff adjustiments by New Zealand for; i motor-vehicle components, to: (come into effect from July! (1- | The new tariffs would | have a significant effect on> the capability of the Austra-j lian motor industry to sell well in New Zealand, he said. In talks under the New.. ' Zealand-Australia_Free_Tradel

Agreement, he would register very strongly that there should be some modification of the tariffs recommended. He was sad that the New Zealand Government an-' j nouncement had been made (before any consultations; with Australia. ' Under N.A.F.T.A., the two! countries had agreed there, .would be consultations before any alterations in the ; preferred-tariff arrangeIments, he said. Mr Anthony, the Minister for Trade and Resources, ( was replying to the South | Australian Liberal back-i I bencher, Mr lan Wilson, (who asked if it was a factj I that New Zealand had reduc■ed its tariff on motor-vehicle ( components imported from, Japan and the United States: from 45 per cent to 35 per; cent.

At the same time had New Zealand increased the tariff on motor-vehicles from Australia from 20 per cent to 25 per cent, he

asked. Mr Wilson asked if this would cost Australian manufacturers S2OM in export orders and cause a decline

Itn employment opportunities. ; Did New Zealand consult 'Australia before making (these moves? he asked. ‘‘Has New Zealand re-1 neged on its obligations; ’under N.A.F.T.A., or is New; ; Zealand trying to double-( (cross Australia?” I Mr Anthony replied that, .he had had representations; from automotive manufacturers in Australia, and he was very concerned about the announcement that New Zealand would adjust tariffs from July 1.

I “I am sad to sav the an(nouncement was made before any consultations , began,” he said. Consultations were now under way, and it could be argued that the new tariffs did not come into effect for a few months. But it would have given Australia time to explain the situation to the industry, in Australia and tell New Zealand what the consequences would be. At talks this month he would ‘‘register very strongly” that there should be some modification of the tariff recommendations.