N.Z. hopes for deal today from E.E.C.

Press, 23 July 1980, Page 1

N.Z. hopes for deal today from E.E.C.

NZPA London The "final proposals” on New Zealand’s iamb and butter exports to Britain will be put to the E.E.C’s Council of Agriculture Ministers in Luxemburg today.

The proposals, hammered out in Wellington last week in meetings between the Common Market Agriculture Commissioner (Mr Finn Olav Gundelach), the Prime Minister (Mr Muldoon), and the Deputy Prime Minister and chief E.E;C. negotiator (Mr Talboys) top the agenda for the council meeting. Mr Gundelach will tell the Farm Ministers of the European Community’s nine member nations’ that New Zealand will accept voluntary limits on its lamb sales in Europe if the present 20 per cent E.E.C. levy on sales is decreased to 8 per cent. He is also expected to tell the Ministers, some of whom are deeply hostile to New Zealand’s continuing presence on. the European market, of still-secret “refinements” to the proposal on 1980 butter quotas. The meeting is the last one before the E.E.C. machine closes for the European summer holiday. The Farm Ministers will not meet again until late September. .. ’ With the December. 31 deadline oh the'present butter arrangement rapidly approaching, and. with the

lamb package virtually agreed, New Zealand is keen to get both issues resolved today. But. most observers say 'the French may veto both the butter and lamb proposals in an attempt to gain domestic political points as the French Pre* sident (Mr Giscard d’Estaing) prepares for next May’s presidential election. But the . French could meet strong opposition. Britain,' New Zealand’s main ally in the Community, will push hard for a decision today, at least on lamb. Other nations such 11 West Germany and Belgium are also affected by the French refusal to allow any lamb imports until an E.E.C. sheepmeat regime is instituted, and are likely to join Britain. The introduction, of the sheepmeat regime will bring immediate and substantial cash benefits to European sheep producers, another factor which could help in the drive for an early decision. The council will have to set a new target date for the start of the sheep policy, as the original July 15 commencement deadline has come and gone. The recently announced

butter proposal that would cut New Zealand’s quota from 115,000 tonnes this year to 97,500 tonnes next year, reducing to 90,000 tonnes from 1984 onwards, will also be on the table at the council meeting for the first time. However, there is thought to be virtually no prospect that detailed agreement wil be gained on this highly contentious issue today. In Auckland yesterday, the French Ambassador (Mr J. Gueury) said New Zealand politicians were among the best negotiators in the world — “they have the art of looking as though they have lost even after they have won.” New Zealand had won guaranteed access for 200,000 tonnes a year which was the average of the last three years. In addition, provision had been made to increase this to ; accommodate the needs of Greece, when that coun- i try joined the Community, j he said. “Federated Farmers esti- I mate New Zealand will ex- I port only about 175,000 s tonnes to Europe this sea- ; son, so what are you s worrying about?” Mr 1 Gueury. said. |