Aust, threatens to axe E.E.C. trade

Press, 16 July 1980, Page 1

Aust, threatens to axe E.E.C. trade

NZPA Canberra The Federal Australian Government yesterday threatened that it' could cut off trade ■ worth, about SAustlOOO million with’the European Community in retaliation for a planned new sheepmeat regime. _ The Deputy Prime Minister (Mr Doug Anthony) said he had analysed areas of- trade dealing with defence, communications, aircraft and other items that 'could be directed to other parts of the world. This would be done if the European Community continued to ignore .Australia’s complaints about the way its agricultural policies were affecting its trade and . international trade in . these - commodities. : ’

Mr Anthony was speaking to reporters after a two-hour meeting at Canberra with the E.E.C.’s Agricultural Affairs Commissioner, Mr F. Gundelach. “Mr Gundelach was delivered a very, very stem message, certainly the strongest message I could get though to him, that as far as Australia was concerned their agricultural policies are totally objectionable to us,” Mr Anthony said. He said the message was delivered in a tone of “not viciousness.

but certainty of great determination.”

If the Community was to go ahead willy-nilly with yet another regime on sheepmeat, it must expect retaliation from the Australian Government. Mr Anthony said the sheepmeat regime would be totally unacceptable if it was. going to have the same consequences as all the Community’s other regimes had had> on Australian trade. “We would want to look closely at the text of any such regime to see that it might

be amended to a moreacceptable form.” Mr Anthony said he did not want to, spell out, at this stage, full details of where trade cuts could be made, but they could amount to about sAust 1000 million. Mr Gundelach said after their talks that he had taken note of the threats, but did not take kindly to them. “I am not accustomed to negotiating under threat, but the Australian Government is master in its own house

and decides what they have to say • and do,” he said. “The Australian Government feels that they have to make them in order to be heard. I personally do not think that has to be the case.” Mr Gundelach said that neither the European Community nor Australia had perfect trade policies. "You are not all that liberalistic either,” he said. “So all this stone throwing between people all living in glass houses is in my view not the most

constructive way; of solving our problems.” The sheepmeat regime emerged last month when the Common Market budget, included a. 5 per. cent lift in farm prices and the introduction of a new system of support for lamb producers. . • Australia’s objection is to sheepmeat production within the-■E.E.C. being subject to the ~ same support price principles as beef, sugar and dairy products. The Government fears this could lead to in-

creased production with the . surplus meat being exported or dumped at subsidised prices, on markets outside the E.E.C. Mr Anthony said that there would be more talks on . the quest ion , of a sheepmeat regime in Brussels next Tuesday between Australian officials and the Common Market. . Meanwhile in London NZPA reports that there are E.E.C. fears that Australia may reconsider buying the European airbus unless it gets a better deal for agricultural exports.

The E.E.C. Commissioner for External Affairs (Mr W. Haferkamp) said yesterday at a Brussels press conference that an Australian decision on whether to buy the airbus would be influenced by the E;E.C.’s attitude towards opening up its.market to more agricultural imports.' Mr Euhdelach arrived in New Zealand yesterday for talks with the Government leaders. Im Wellington yesterday the chairman of the Meat

Board (Mr A. Begg) said the New Zealand Meat Industry was strongly opposed to subsidised sheepmeats from the E.E.C. being exported to other •parts of the world and upsetting established markets. v ; ■ “This would simply be , \ Europeans exporting the problems created by a protectionist system that tended to price lamb beyond the buying ..capacity of their own consumers. This is already happening with E.E.C. beef, particu-

larly to the Middle East and the Mediterranean.” ; Mr Begg said several issues remained to'be resolved that- were of vital importance to New Zealand’s trading future. One was the possible build-up of intervention stocks of . lamb within the E.E.C. as the result of a mechanism which aimed to solve an internal political' . and social problem of maintaining sheep production in what are called “dis- . advantaged” areas of Europe. . ' - The Meat Board considered that this internal political problem should not be ■ subsequently ■ disposed of by selling subsi- ■ dised intervention meat outside the Community!