Australia keeps pressure on E.E.C.

Press, 22 September 1980, Page 4

Australia keeps pressure on E.E.C.

NZPA Sydney Agreements reached between the Australian Deputy Prime Minister and Trade and Resources Minister (Mr Douglas Anthony) and the European Commission over the E.E.C. sheepmeat regime include an annual access for Australia of 17,500 tonnes.

On his return to Australia yesterday Mr Anthony said this was part of a proposal to be put to the nine Farm Ministers of the E.E.C. Agricultural Council when they meet in Brussels next week.

Retaliatory trade action by Australia against the European countries rests with their acceptance of the proposal. Mr Anthony said that because of the outcome of the discussions in Brussels he would recommend that the Government proceed with the next stage of the T.A.A. Airbus deal, but all other trade suspensions would remain until the Ministers’ meeting on September 29 and 30.

He said the access agreement was only the secondary issue. The main issue was the E.E.C. policy of subsidising the export of sheepmeat. He said his discussions

with the Commission, headed by the Commissioner for Agriculture, Mr Finn Gundelach, included a demand that the E.E.C. not increase ■export quantities of sheepmeat to Third World markets.

Mr Anthony said that although this would be a difficult decision for the Agricultural Ministers he could not accept their assertion that they would never become substantial exporters of sheepmeat. He said: “When you look at their performance in other commodities working with subsidies, such as sugar, grain, and dairy, production has exploded and they have become the world’s largest exporters.

“The common agricultural programme is costing $lB billion of which $7 billion is used for export subsidies.”

Mr Anthony said this meant Australia was completely excluded from Europe with these products, but it’s main effect was the disruption to world trade markets.

Mr Anthony said he was sure his talks were the first time the E.E.C. was prepared to take Australia seriously.

“I don’t think we would have got a reaction if the

trade threats had not been made,” he said. “Unless there is some reaction from members who might get hurt through Australia’s trade bans then the European countries will treat Australia with contempt.” Mr Anthony said another matter raised during the talks was the beef balance sheet, of which Australia obtained a total quota for 60,000 tonnes at the earlier multilateral trade negotiations. He said the European Commission was attempting to dishonour this agreement. Settlement of the scheduled quota would come before the Agricultural Ministers’ meeting in October, Mr Anthony said. He said he also was pleased that the E.E.C. was now talking about joining the international sugar agreement which had long been a dispute between Australia and Europe. The commission was attempting to obtain a mandate to this effect from the Agricultural Council. Mr Anthony said Australia had been the only sugar-pro-ducing country to stand up to the E.E.C. over this issue, while others such as Cuba and Brazil were not prepared to take the lead.