U.S. promise on N.Z. lamb

Press, 8 May 1980, Page 12

U.S. promise on N.Z. lamb

Wellington correspondent < i A pledge to protect New t Zealand’s lamb imports against a growing United ( States opposition lobby f has been made by Presi- t dent Carter’s chief inter- < national trade adviser, i Ambassador R. O’D. Askew, in Wellington. I Mr Askew, who is in I New Zealand for trade talks said that legislation < drafted to limit lamb imports would soon be con- * sidered by Congress. It would limit imports of ; lamb in any year to 10 > per cent of the amount produced in the United , States in the previous i year, or to $24.7 million I which ever was the small- i er. ' Had the legislation been in effect this year it would have cut imports of i New Zealand lamb by 40 per cent on last year’s levels. i Although he could not say what might happen to the bill, the Carter Administration was opposed to < it, Mr Askew said. “We are opposed, by and large, to protection where it is not completely ; justified, and our own i

declining lamb production is of substantial concern to us.” On New Zealand beef exports to the United States. Mr Askew said talks had covered the counter-cyclical arrangement. “We do not expect any limitations on beef imports this year,” he said. “Demand is going to exceed supply.” However, next year was another matter. Asked whether he had any feelings about continued exports of New Zealand lamb to Iran, Mr Askew said he had “substantial personal feelings,” but preferred any comment to come from the State Department. “New Zealand’s trading flexibility is limited, but on the other hand we live in a precarious world, and hostilities have a way of impeding trade,” he said. The United States was “disappointed” that it had lost to Rolls-Royce the engines contract for Air New Zealand’s Boeing 7475. “But it is the absolute prerogative of the New Zealand Government to

choose the engines it wants in the aircraft’" he said. “The airline made it quite clear that its recommendations were subject to Government conformation. “We are pleased that we received the contract for the Boeing aircraft bodies instead of Airbus. If we lost $9B million on engines, we gained a $382 million contract for aircraft bodies. "I do not mean to imply there are not further feelings, but that is how it might most appropriately be expressed.” Mr Askew said that New. Zealand, like many small countries. was struggling with the need to lower trade barriers. “I think New Zealand’s fears are of what might happen, rather than what has happened. particularly in relation to meat and wool.” He said that the Acting Minister of Overseas Trade (Mr Adams-Schnei-der) would review tariff schedules that at present worked against exports of United States vegetable oil to New Zealand. However, the talks were not intended to focus on particular items, or to debate whose policies were more protectionist, Mr Askew said. They were to enforce the importance the United States placed on its relationship with New Zealand and to avoid misunderstandings at “this precarious time.”