THE PRESS TUESDAY, JUNE 23, 1981. Trade pact with E.E.C.

Press, 23 June 1981, Page 16

THE PRESS TUESDAY, JUNE 23, 1981. Trade pact with E.E.C.

The suggestion that New Zealand will seek a trade agreement with the European Economic Community — an idea the Prime Minister, Mr Muldoon, is apparently discussing with various European leaders — is an interesting proposition. New Zealand has commodity agreements with the European Economic Community but, in all negotiations, relies heavily on Britain and other individual friends in the Community, particularly West Germany, to see that. its interests are protected when trade is discussed. New Zealand has no direct access to the highest places in the European Economic Community and has to rely on others to represent its case there.

Britain has been an able and determined advocate on behalf of New Zealand. One of the advantages of having a separate trade agreement with the E.E.C. would be that New Zealand would be built into the system of decision-making in the E.E.C. and that therefore there might be less need to seek the constant help ,of Britain and other friends, who have their own interests to advance in the Community as well as the task of protecting New Zealand’s interests. /•

Advantage might also be gained from' dealing with the Community as a whole because it would then seem incumbent on the Community to treat New Zealand fairly, even and not -just' - , respond to the. pleadings of one. of New : Zealand’s friends. The European Economic . Community likes itself to be regarded as a separate body with a status of its own. The discussions on the point that Mr Muldoon has had with the British Prime Minister, Mrs Thatcher, and with President Mitterrand of France, and plans to have with Chancellor Schmidt .of West Germany, will be useful in judging the political reaction to the proposal. It must be borne in mind, however, that if New Zealand were to enter a trade agreement with the E.E.C. it is not these leaders who must agree, but the European Commission, a group of European civil servants, who would then put the proposal to the Council of Ministers. In spite of a general disposition to see New Zealand, deal with the Community as a whole, the path towards a trade agreement through the commission to the council would not be smooth.

the European Commission is likely to be-slow in pressing for an agreement with New Zealand because, except for Canada, the E.E.C. has no trade agreements’with any developed countries. It has agreements with developing countries. The Canadaaian agreement is one of mutual co-operation. It was motivated mainly by political

considerations. Canada always feels the pressure of the United States across the border," and Mr Pierre Trudeau, in an earlier term of office as Prime Minister, wanted to assert his links with Europe, particularly his links with France and Britain. The European Commission could see Mr Trudeau’s problem and made an exception for Canada.

Any agreement reached between New Zealand and the E.E.C. would have to be different in kind from the agreement reached between Canada and the E.E.C. General expressions of good will and a readiness to co-operate would be of little use in protecting some of New Zealand’s vital trade concerns. New Zealand has to know how its trade will be affected in quantities, price, and duration of access. Common commitment to high principles of co-operation are by no means to be despised ■ and New Zealand’s links with Europe are founded partly on common interests and democratic traditions. The more mundane matters of trade need to be embodied in any agreement in tjie same way’ as they are embodied in the commodity agreements that New Zealand now has with the Community. Until the Community is prepared to grant such an agreement, New Zealand cannot afford to do without the present even if these.include the soliciting -of help from various countries..

The E.E.C. Will hot accord high priority to the concluding of such an agreement. After all, apart from taking note of the commodity surpluses that it has, the Community was enlarged by the accession of Greece at the beginning of this year and Spain and Portugal are waiting for their turn to join. The problems associated with these countries’ joining the Community give the Community little chance to consider other problems. Even if the Community did not have the problems of new members to consider, an agreement with ■ New Zealand would not be given priority.

New Zealand at least has the commodity agreements for butter and lamb, which, were arrived at over many years. Europe may find more sense in concluding ' agreements with other developed countries for political reasons, as in the instance of Canada, than in making agreements for trade reasons — especially when New Zealand dairy products in particular create domestic problems.for European governments. New Zealand has every reason not to rush into an agreement with the E.E.C. and there is no sign that the E.E.C. wants to rush into one with New Zealand.