‘Alternatives’ suggested for export rebates

Press, 10 November 1980, Page 28

‘Alternatives’ suggested for export rebates

PA Wellington New Zealand could find alternatives to the export incentives that are landing it in trade disputes, says a visiting American trade expert. “Creative minds” could find ways of achieving substantially . similar results as the export incentives without falling foul of international trade agreements, said Dr Shirley Coffield, in Wellington.

The export incentives have been ruled an unfair subsidy by the United States Commerce Department in a preliminary decision on a complaint against exports of plastic ear tags by a New Zealand company, Delta Plas-, tics, Ltd-

The case is seen as important, for if the decision is confirmed it could open many other exports to the United States — New Zealand’s biggest market — to similar charges. “Your export tax rebate scheme is, frankly, of some concern to policymakers in the United States ” Dr Coffield told a gathering of business and Government representatives in the American Embassy. Dr Coffield, a former United States Government trade adviser and now partner in a law firm specialising in trade and busi-

ness law, is in New Zealand as guest of the embassy. There was sympathy in the United States for NewZealand’s goals, and it was felt those goals could be attained in other ways than by the export incentives, she said. “Creative minds can find ways that reach substantially similar results without falling on the prohibited list.”

The Minister of Overseas Trade (Mr Taiboys) has said that the Government does not intend to modify its export incentive schemes as a result of the United States Commerce Department, ruling. In Parliament, Mr J. A. Walding (Lab., Palmerston North), had asked if the Government would modify its schemes.

a preliminary determination and that there would Mr Taiboys said it was be a further inquiry before a decision was given on the subsidy aspect. Even if the subsidy was confirmed, it had to be shown that the New Zealand product caused material injury to the United States industry, Mr Talboys said. The Government was consulting Delta’s lawyers about submitting a brief and attending the next hearing on December 4.