Export incentive scheme under review in U.S.

Press, 9 August 1980, Page 2

Export incentive scheme under review in U.S.

PA Washington! .'The New Zealand Govern-! ment’s export incentive! scheme will be examined byj the United States Inter-' national Trade Commission' at a public hearing in Wash-■ ington In two weeks. The commission has: planned a preliminary hear-, ing into a complaint by an! American manufacturer that New Zealand export tax in-! centives amount to' unfair subsidies. ! ■;.< The case in question con?, cerns imports of animal ear tags made by Delta Plastics; Ltd, of Palmerston North. A Wyoming company has lodged a complaint that its trade has been unfairly injured by the' imports from New Zealand. Only a small export trade, at present worth about SNZI million a year, is involved, but the case has direct impPcatioris for every New Zealand export to-the United States which is subject to Government .tax incentives.

ii This would include; -I exports of most manufae-i sjtured goods, now worth jmore than §NZ 60 million a: iyear, and the lamb trade! 11which could to. SNZ 40 mil-) ■ ’lion thic year. . 1 I New Zealand Government ;; officials in Washington, who . i describe the complaint as a i test case, are expected to t; give evidence at the. com- ■ ; mission’s hearing on August ■ 22. ’■ The Wyoming company . seeks’.',- the- imposition of • duties on the imports to ■; raise prices and balance k what it claims are pfoduc- ;> tion. subsidies from the. New ; I Zealand Government. -I A commission spokesman i; said yesterday ■ that both j sides would be given an . hour to state their case at 1 jthe preliminary, hearing. , | If the commission then -(decides that a prima facie j I case has been made out for J-duties to be imposed, it. will j I hold a full investigation into 'the case.