Starting date for C.E.R. still Jan 1?

Press, 29 January 1982, Page 3

Starting date for C.E.R. still Jan 1?

PA Wellington The starting date for Closer Economic Relations with Australia still appears likely to be January 1 next year, according to the Minister of Trade and Industry (Mr Templeton). The next round of negotiations on C.E.R. would be officials’ talks'in February, followed by a meeting of the Prime Ministers, scheduled for April, Mr Templeton told a meat-packaging seminar. In the last 12 months many previously expressed New Zealand business fears over reduced protectionism had been allayed through discussions, studies and exchanges, said Mr Templeton. In the mid-19605, when the Nafta agreement was being contemplated, a “similar sense of fear and anxiety was rife in the manufacturing community. “I do not think anybody could point to disadvantages for New Zealand as a whole or for many individual

manufacturers as a result of that Holyoake-Marshall initiative,” said Mr Templeton. But grocery manufacturers are unhappy about closer links. The president of the Grocery Manufacturers’ Association, Mr David Bagley, said after meeting Mr Templeton yesterday that his fears about’competition from Australian manufacturers had not been allayed. Mr Bagley said that Mr Templeton had praised the industry’s efficiency in New Zealand, but he said that competition from Australia may mean some New Zealand businesses would have to cease.

Mr Bagley said that when reinvestment decisions were made the presence of efficient comparable units in Australia might mean money was not put back into New Zealand. This would let the Australian market take over more quickly.

Mr Templeton emphasised the benefits of C.E.R., saying free trade would help New Zealand manufacturers, particularly those in dairy and other food lines. He also said C.E.R. would move gradually, and he hoped the package with Australia would come together soon. Under the access formula there would be very modest entry from Australian manufacturers over a seven-year cycle; allowing ample time for the New Zealand manufacturers to adjust. A review would be held five years into the cycle. Where manufacturers were put under undue pressure safeguard mechanisms could be invoked, said Mr Templeton. These would include measures to counteract the dumping of products and unfair competition. Mr Bagley said his association was still not fully informed about the safeguard mechanisms.