P.M. calls for end to farm protectionism

Press, 15 June 1979, Page 3

P.M. calls for end to farm protectionism

NZPA Paris The Prime Minister (Mr Muldoon) has called on the Organisation for Economic Co-operation and Development to make a concerted drive to tackle agricultural protectionism in the next 12 months. The plea for an examination of barriers against farm trade with the same vigour as the O.E.C.D. had moved on industrial protectionism came after Mr Muldoon had made a wide-ran-ging attack at an O.E.C.D. council meeting in Paris on international attitudes to agricultural exporters. Mr Muldoon said that any serious commitment to lowering barriers against farm produce would involve decisions which affected the structures of the domestic economies of the 24 mainly industrialised Western nations which make up the O.E.C.D.

“Without serious and genuine commitment to change in agricultural structures by major economies the tradeaccess difficulties faced by efficient and traditional exporters cannot be solved, nor can the problems of agricultural surpluses and their threat to normal commercial trade be alleviated” he said. “If the necessary measures cannot be discussed and agreed here, in the 0.E.C.D., where can they be developed?” Mr Muldoon singled out the European Economic Community, Japan, and the United States for special criticism. His address was the only one to provoke a response from Ministers listening to a day of such set-piece speeches at the

Chateau de la Muette (“Castle of the Mute”). It brought immediate and strong support from the Australian Foreign Minister (Mr Andrew Peacock), who had earlier made a passing swipe at agricultural protectionists in his own address. Mr Muldoon said later that the reaction from Japan and the E.E.C. had been "rather mild.”

His call for a close study of the problem by the O.E.C.D. seems likely to be acted on.

His suggestions, including work on positive adjustment policies and the inclusion of agricultural problems on the agendas of a series of ministerial and committee meetings to be held during the next 12 months, were “noted” by the conference and New Zealand will try to have reference to them included in the final communique today (New Zealand time).

The O.E.C.D.’s SecretaryGeneral (Mr Emile van Lenneup) said he felt sure there were ways in which the O.E.C.D. could respond. Mr Muldoon said, “I would expect them to act.” Earlier New Zealand had swallowed its deep reservations and signed the O.E.C.D.’s “trade pledge” for the fifth successive year but only after Mr Muldoon had questioned “the validity, the relevance, even the honesty” of the pledge. New Zealand maintained its deep concern “and indeed disbelief” about the worth and effectiveness of the pledge, which in theory commits the Western nations in the O.E.C.D. to removing all barriers to industrial and farm trade. But New Zealand wanted to achieve its “equitable so-

lutions” by working in conjunction with the other members and had signed again as evidence of its genuine concern to work in cooperation. Criticising the agricultural protectionism used in some form by virtually all O.E.C.D. members, Mr Muldoon said that New Zealand ran into a barrier against its products every way it turned. All O.E.C.D. members had economic problems. But for a small, isolated, and vulnerable economy like New Zealand agricultural protectionism stood out starkly.

The Multilateral Trade Negotiations concluded earlier this year had failed in the liberalisation of farm trade, which had been one of the main objectives of the “Tokyo round.” The “yawning gulf” between the rule on industrial trade and those on farm trade now seemed about to be enshrined in world trade. The main industrial nations which should have constituted the natural market for farm exports were New Zealand’s big concern. Mr Muldoon acknowledged the special arrangements made by the E.E.C. for New Zealand but said that the E.E.C.’s Common Agricultural Policy was a “dark tunnel” of protectionism, with the reforms now suggested by the E.E.C. Commission being the only ray of hope. Japan had severely restricted access to several vital New Zealand farm exports while it chased the illusory goal of food selfsufficiency. In fact the policy had made Japan more dependent than ever on imports by transfering import needs from “modest qua-

tities of animal products to vast tonnages of animal foodstuffs.” The United States, a potent force for the liberalisation of industrial trade, had made beef and veal exporters an offer that could not be refused of voluntary restraint agreements to avoid even more restrictive formal quotas. New Zealand might have prompted a move towards more open world markets for agricultural produce, says Ken Coates from London.

Hopes are high among the New Zealand delegation that the O.E.C.D. will adopt some of the suggestions put forward by Mr Muldoon for removing trade barriers. His blunt speech of criticism about failure to liberalise further trade in farm products at least achieved a response. This is more than can be said for some of the more idealistic addresses of other Ministers.

Officials regarded as encouraging that the Secre-tary-General .'Mr A. van Lennep), setting out conclusions after the first day, agreed that agricultural protectionism has to be actively opposed. He also noted the suggestion that Mr Muldoon’s proposals be put before the forthcoming meeting of agricultural Ministers next year.

There is every chance that New Zealand’s urgings for a concerted drive by the O.E.C.D. over the next year to tackle agricultural trade problems will feature in today’s final communique agreed upon by the 24 countries represented. Officials are optimistic that this will form a sound base from which to achieve

real co-operation from member countries.

PA Wellington It will be up to the West German Government to decide if its ambassador here, Dr Karl Doering (above) should return to New Zealand, according to the Acting Prime Minister (Mr Taiboys) yesterday. Dr Doering served in the Waffen S.S. during World War 11, it was made known this week. “No doubt they will assess the sort of reaction there is in New Zealand,” Mr Taiboys told a postcaucus news conference. Dr Doering is at present on leave in West Germany. “This is a question which will be determined by the Federal German authorities. After all, he is their Ambassador to New Zealand,” said Mr Taiboys, when asked by journalists if Dr Doering would re-... turn from leave. The “Guardian” newspaper in London reported that Dr Doering had been exonerated by a “deNazifi-... cation” committee in September, 1948. Story of Waffen S.S., Page 13.