Aust.-N.Z. trade complex business’

Press, 14 August 1980, Page 1

Aust.-N.Z. trade complex business’

NZPA \ ‘ Canberra - Both Australia, and. New Zealand recognised the need for freer trade between ■ the two countries, but the matter was . “extremely‘complex;’’ said the, Deputy Prime . Minister.. (Mr Taiboys) in Canberra yesterday after the annual round of Ministerial talks on the * New ZealandAustralia . Free Trade Agreement. “It is not just a matter of deciding • that you are going to free up trade,” Mr Taiboys said. “It is a complex business.- The studies are being done, there will be an exchange of the results of those ’ studies, we will make a comparison of them. Then you have to sit down and- start- negotiating,” he said. The Australian Deputy Prime - Minister (Mr Douglas Anthony), said that progress on studies by officials on closer -economic relations between the two: countries had been ■ “most encouraging.” . He said the Governments expected to be in a position to study the detailed reports towards the end of this year. “Even then, no doubt, • there will be deep consultations between the two governments and at that point-we will have to decide what course of action .is to be taken,” he said.

• Mr, Anthony .warned that it. should not be assumed, at this stage that New Zealand and Australia were to forge closer economic, relations. “That is wrong at this stage;” he said. ' '

hT the -talks New Zealand was rebuffed by the Australians on the questions of the clothing trade between Australia ~ and New Zealand. ■ '

This Was in spite of what, officials, indicated was some of the toughest talking seen, from the Minister for Trade and. .Industry'(Mr Adams-Schnei-der) in recent N.A.F.T.A. negotiations.' . - Mr Adams - Schneider said it had not proved possible to reach a mutually agreed basis on which a N.A.F.T.A. 3:7 special trade arrangeinent could be extended from the beginning of next month. This means that New Zealand manufacturers arid exporters will have to sell iri Australia under global quotas, - the same arrangement that existed before 1977.

“Imports into New Zealand will be possible under the terms of the new tendering- system being introduced,” Mr Adams-Schneider said.

He said that in the talks he stuck with the brief he had from the New Zealand manufacturers and the Government. This was to continue with the scheme arranged in 1977 which had meant an access into Australia of 2.9 million New, Zealand garments, and to allow an Australian ' access . into New Zealand on demand of up to 4. per cent of New Zealand usage' on particular items.. . As well this would have allowed for an increase of 10 per.cent for 1981. ; •

' Trade will be increased by 400,000 square metres in both directions so New Zealand carpet manufacturers will be able to export 2.5 million sq.m, and Australians 600,000 sq m a year.

Mr Adams-Schneider said there was provision for a further 300,000 sq m to be traded in each direction to come in • later this year or next year. Trade sources have indicated that the Australians have been arguing for a one-for-one basis iri clothing and other items such as whiteware under the N.A.F.T-A. agreement so as to have a bigger base in New Zealand to work and negotiate from in the future closer ecom dmic relations talks. The two sides, also endorsed an agreement between carpet . manufacturers’ ; - , organisations reached earlier this .year under which duty free trade in Wool-rich carpet will be increased.

The powerful National Farmers Federation yesterday jolted, moves towards closer economic co-oper-ation between Australia and New Zealand.

.It strongly criticised a lack of consultation., by the Australian Government; with industry over .the moves and described trans-Tasman trade benefits for Australia as' marginal- , f Instead it .opted, for developing countries in the Pacific and.the Association of South-East Asian Nations as offering a much , greater growth potential;