U.S.-N.Z. export talks ‘constructive’

Press, 19 August 1981, Page 17

U.S.-N.Z. export talks ‘constructive’

PA Wellington The United States special trade representative, Mr William Brock, appears to have given little ground in his argument with New Zealand concerning export subsidies. After meeting three of Nev; Zealand’s Ministers to discuss the matter, Mr Brock said that the talks had been “constructive.”

"I use the word constructive advisedly — both sides entered the discussions with a sincere will to reduce the problem as much as they could,” he said.

Mr Brock agreed that he had come to New Zealand with full power to negotiate on the issue and would not have to refer the question back to President Reagan, but said he was constrained by United States law.

We have had a case filed

by a private group in the United States, the woolgrowers, which requires a finding by the Commerce Department by a 'certain date,” he said. “There is no flexibility on this under United States law.” The latitude for New Zealand would run out on September 19 (when the Commerce Department is likely to find that New Zealand lamb exports are subsidised, and put a countervailing duty on them). New Zealand can escape the countervailing duty if it signs the G.A.T.T. code on subsidies, but it has refused to do so unless it can keep export incentives. New Zealand has proposed to sign the code with reservations, but Mr Brock rejected that as an “irrelevancy.”'

He said that if New Zealand lamb had not affected the interest of American sheep farmers he might not have had any argument against it. “In all candour, we are caught in something of a trap.” he said. “It is hard for me to find fault with New Zealand subsidising the United States — it helps our consumers and it helps beat our inflation, but we are caught in a finding of fact under the law.”

Mr Brock also explained to the New Zealand Ministers the United States proceedings against New Zealand casein exports, which he said were now “a good deal calmer." He also said that he had repeated United States complaints about the New Zealand import licensing system.