Australians to study ‘trade co-operation’

Press, 10 August 1979, Page 4

Australians to study ‘trade co-operation’

NZPA Canberra The Department of Special Trade Representation in Canberra has begun background work on proposals for closer economic and trading ties with New Zealand. A departmental spokesman said yesterday that several options were being considered but they all boiled down to closer co-operation in international trade negotiations. The New Zealand study was not expected to take precedence over Australia’s ongoing commitments to the European Economic Community and the A.S.E.A.N. nations.

"It would be incorrect to say we are looking at some sort of trading bloc with New Zealand but we are considering action in concert with New Zealand on future trade talks,” said the spokesman. A meeting has been arranged between New Zealand and Australian officials in September. Australian officials said that any plan formulated by either country would probably not be put into effect for five to 10 years. A free-trade agreement is likely to affect the present N.A.F.T.A. scheme which provides for duty-free trade in goods only if an industry in either country is not likely to be affected by it. In Wellington the Minister of Overseas Trade (Mr Tai-

boys) said that a decision on further economic co-operaton between the two countries would not be made until late this year or early next year. New Zealand trade officials were studying what would be involved in going outside the N.A.F.T.A. scheme. When this was completed meetings of officials, Ministers, and finally the Prime Ministers of both countries would take place. The “Australian Financial Review” said it was time that political union between Australia and New Zealand became an urgent issue in both countries. Such a union had to be the ultimate goal of a customs and economic union. A customs union, although involving considerable problems of adjustment, would make much sense and complete economic union would maximise the benefits of a customs union. The newspaper noted an apparent and “amazing change of heart in New Zealand concerning that country’s economic relationship with Australia,” referring to a New Zealand newspaper poll result in favour of complete political union with Australia. “The removal of barriers to the New Zealand market would be a bonanza for our manufacturing industry," it said. "At the same time New

Zealand depends heavily on the Australian market' and protective barriers to New Zealand imports are a major problem for that country. “The most sensible thing for Australia and New Zealand to do would be simply to remove all trade barriers between them tomorrow. . The ultimate goal of a customs and economic rmion must be political union . . . and it may well be that political union would be the place for us to start ratter than to aim at in the distant future.’’ The newspaper said New Zealand could become a state of Australia by simple act of the Federal Parliament. No referendum would be needed. In Melbourne, the president of the Australian Dairy Farmers’ Association (Mr John Bennett) said Australian dairy fanners had no objection to the creation of a South Pacific Common Market including Australia and New Zealand provided it was not achieved at the expense of the Australian daily industry. “If there is the slightest hint that Canberra intends to sell us out by giving some or all of our domestic market to the New Zealand dairy industry to make up for New Zealand’s lost market in Europe. I can promise the Prime Minister some Parliamentary heads will roll at the next election," he said.