Unhappy about clause

Press, 23 June 1978, Page 15

Unhappy about clause

The board is opposed to the introduction of a safeguard clause (which allows the community to take arbitrary and unilateral action to open or close the frontiers to imports on the basis that these products are disrupting the interna] market) especially since there is such a low level of self-sufficiency in the community. It would appear that the clause has been introduced mainly because it appears in other regimes covering agricultural' products, without recognising the essential differences between sheepmeats production and other sectors such as beef and dairy production. The board, in collaboration with the New Zealand Government and the meat industry, has demonstrated in the E.E.C. and elsewhere that it has the capacity and the willingness to ensure that New Zealand meat, particularly lamb, can be marketed in an orderly manner. It has also shown that it can work with local producer and trade interests in

assuring consumers of continuous supplies at reasonably stable prices. Orderly marketing can only be achieved under conditions of reasonable and stable, access, which are placed in some jeopardy by the safeguard clause. There fore, the board is opposed to this measure.

The preamble to the draft proposals indicates that import licences are required “to keep the member states and the commission informed as to the quantities likely to be traded with non-member countries.” The board considers that since it already publishes details of the supplies of New Zealand meats on the water between New Zealand and Europe, and that the mechanism for collection of' the Common Customs Tariff allows for the monitoring of quantities of imports, there is no need for the extra burden of import licences. In addition, however,

the proposals include a provision for the payment of a security to obtain a licence. This would impose a further burden on importers in financing these securities, which would eventually be borne as an extra cost by the New Zealand producer. The board considers that this additional import charge contravenes the E.E.C.’s contractual agreement under the G.A.T.T. to limit the rate of duty to 20 per cent ad valorem; therefore, these provisions should be deleted from the proposals.

The commission has noted that ‘‘a transitional period is essential on account of the very big differences in market prices and production costs between Ireland and the United Kingdom, and other member states.” However, transitional arrangements are only proposed in respect of the payment of premiums to producers to maintain incomes and allow time to carry out necessary changes in production structures. There is no mention of a transitional period or mechanism to allow for adjustments in the import, and consumer sections to the different trading and price situations in the market. The board considers that since the differences in production, consumption and price patterns within the community are so pronounced, a long transition period of up to 10 years is necessary to allow for the gradual adjustment to a new regime. The principal concerns of the board have been given publicity both in New Zealand and in Europe. Prior to the announcement of the draft proposals the board issued a publication entitled “A Common Sense Approach to the E.E.C. Sheepmeat Market.” which was widely distributed in the United Kingdom and in the Common Market capitals. This was a factual statement on the state of the sheepmeat market in the E.E.C. and New Zealand’s position as a major supplier. It also indicated

the concern at the possibility of the introduction of a regulation which would distort the traditional patterns of prices and cause consumption to drop. It therefore advocated the use of direct income support to protect sheep producers’ incomes without disrupting demand patterns, and consequently imports. Since the Commission’s proposals were released, the board has presented submissions to:— The Agriculture and Consumer Affairs SubCommittee of the European Communities Committee of the House of Lords. The House of Commons’ Select Committee on European Secondary Legislation. A brief critique of the proposal has been circulated to the 35 members of the Agricultural Committee of the European Parliament, and the board has been invited to make full representations on June 22 (yesterday). The European Director has presented our views to, and answered questions from the members of the sheepmeats sub-committee of the European Committee of Agricultural- Producers (C.0.P.A.). Also, there have been discussions between the board’s London office and E.E.C. Commission officials responsible for the sheepmeats proposals on various technical aspects relating to prices and the mechanics of the imported mutton and lamb trade in the United Kingdom and Europe. In addition, the London office has liaised with and provided background information to the United Kingdom National Federation of Meat Retailers, the British Shipping Lines, the Imported Meat Trades Association, as well as meeting with M.P.’s, press representatives, consumer associations and other interested groups. There are plans for this coverage to be extended in Europe in the coming months so that all interested parties are aware of New Zealand’s views.