Filipino meat scheme worries N.Z.

Press, 25 February 1980, Page 4

Filipino meat scheme worries N.Z.

NZPA Hong Kong Proposals under consideration by the Filipino Government for the establishment of a meat-buying corporation are causing concern within the New Zealand meat industry. According to trade sources, final decisions have not been made by the Manila Government but plans have been put forward to set up the buying agency. Industry concern is directed at the possibility that the agency may deal only with purchases from New Zealand and Australia and that restrictive trade legislation associated with its establishment may lead to a preferred position for American exporters. Also, it is suggested that the proposed agency will establish a special purchasing company in Australia named Philbuy, with Australian financial backing. It is believed that the Prime Minister (Mr Muldoon) did not take the matter up during his State visit to the Philippines two weeks ago because the proposals had not been officially adopted. New Zealand officials are known to have been aware for several weeks

that the Filipinos may go ahead with such a plan. Draft proposals indicated the agency would .deal only with purchasing from New Zealand and Aus"tralia, that a buying company would be run by it, possibly with an office in Australia, and that it would have a large measure of control over imports from “Oceania." The draft regulations establishing the agency did not extend its powers to cover imports from the United States and meat trade sources said they believed that as a result the draft plans were discriminatory. “They held out the prospect that New Zealand and Australian imports would be controlled through the agency and those from the United States would remain free of .restriction,” said one trade analyst. In the trading year to the end of June last year New Zealand sold $U§3OO,OOO f.o.b. worth of meat and offals to Philippine importers. Traders regard it as a useful developing market which holds good potential as the Filipino tourist industry expands and a growing middle class seeks better quality food.