Casein report fails to allay N.Z. fears

Press, 3 June 1981, Page 2

Casein report fails to allay N.Z. fears

NZPA Washington New Zealand is not yet free of the threat of American import restrictions on Casein, in spite of a generally favourable report on the issue released yesterday by the United States Department’of Agriculture. The issue is of vital concern to New Zealand. Casein is its second largest export, after beef, to the United States, with sales worth About SUS 67 million (SNZ76 million) last year. The report rejected American dairy farmers’ assertions that imported casein harmed the domestic dairy industry by displacing non-fat dry milk in processed foods. It said import restrictions Sould; increase inflation by boosting food prices while not offering any substantial savings in the- Government’s big spending on its . dairy -price support scheme. - But the Assistant’ Secretary.of Agriculture (Mr William Lesher) warned that the; report .was merely a discussion paper.. He said it might be several weeks before any ’decisions ' were reached on the casein import question or before the Department of /Agriculture was ready to make recommendations.

The New Zealand Government made representations to the Administration earlier this year, when casein imports came under. determined attack in Congress. Congressmen from dairying states tried unsuccessfully to halve casein imports, holding that they contributed to the United States stockpile of surplus milk powder, now totalling about 281,000 tonnes. Mr Edward Farrell, the New Zealand Dairy Board’s lawver in Washington, said the'report “clearly left open the possibility of the issue again being referred to the International Trade Commission. ’’ Under. United Stales agricultural law, the I.T.C. could recommend that the President impose a 50 per cent tariff or a 50 per cent quota on present tonnages if it found imports interfered with the Government’s dairy price support programme. The. I.T.C. has already ruled once against import restrictions, but political pressures for some action remain strong. Some observers believe that these pressures . will be satisfied only by another I.T.C. investigation.