N.Z. to explore significance of Tokyo trade move

Press, 10 February 1982, Page 10

N.Z. to explore significance of Tokyo trade move

from

BRUCE ROSCOE

in Tokyo

New Zealand can expect no significant breakthrough ■in trade with Japan in spite of the Japanese Government’s decision to simplify import procedures. At least 67 import procedures will be simplified in response to 99 complaints by foreign governments and exporters. New Zealand trade officials in Tokyo see the possibility of slight improvements when some non-tariff ■barriers are dismantled. Until now the barriers have meant import quotas on meat and fruit, severe Customs inspections and approval standards, official “buy Japanese” policies, and impenetrable distribution systems. Tokyo’s move to break down the non-tariff barriers will please its main trading partners who for years have criticised the procedures as a method to keep imports out. The mova is intended mainly to appease the United States, which had a trade deficit of $lB,OOO million with Japan last year, and the E.E.C., which is also running a huge trade deficit with the country.

But the Japanese Foreign Ministry has told the New Zealand Embassy in Tokyo that it will also accept cases of specific complaints concerning import procedures which are seen to inhibit this country’s trade with Japan. Examples, of extreme nontariff barriers include the need for a full-time pharmacist in an office in Japan if a foreign exporter wants to sell a bar of soap, while dental gold importers must prove that no company director is a drug addict.

The approval and testing of foreign cars takes an average of 60 days, and adds significantly to their cost. The Japanese Lawn Tennis Association also decrees that foreign-made balls are not allowed in domestic tournaments.

New Zealand Meat and Dairy boards officials in Tokyo last week spent hours in discussions with New Zealand trade officials in a bid to discover what benefits the import procedure revisions might bring.

The Meat Board’s Asian director, Mr James Leach, said he could see no clear example of unfair treatment. “We have disagreements with Japan over the beef system but this does not involve non-tariff barriers,” he said.

“One item we might look at is the length of time it is taking to have New Zealand chilled lamb cleared.”

The Dairy Board’s Tokyo representative, Mr David Main, said the moves “could be of some advantage but I would hate to think there was something there when in essence there might be nothing.

“At the moment it is a lot of words. We are trying to decipher them,” he said. A boost in radiata pine sales to Japan could result from a change in the regulations concerning plywood. Previously only hardwoods were allowed for plywoodmaking, but new regulations might permit the use of softwoods, which include radiata pine.

New Zealand trade officials are also waiting for clarification on certain curbs on food additives which could be lifted. Canned foods, which New Zealand also ex-

ports to Japan, may no longer need date stamping. While New Zealand exporters have not complained about the stamping, the lifting of the restriction could stimulate trade.

Arguments over tariff classifications may become a thing of the past. This affects duty rates and whether a product is classified as a quota item. Such classifications have tended to vary according to the port of entry. A classification centre will be established at Tokyo Customs to ensure uniformity of classifications at two Japanese ports?'

Some New Zealand dairy products have been a victim to this barrier. When, for example, is a cheesecake a “dairy product” and .when is it a bakery product classified as a “miscellaneous food consisting of mainly milk”? Grey areas such as these have had the effect of discouraging exporters who did not know how Japanese officials classified their product. Rather than giving Japan a blank cheque for import duties, often a decision was taken not to ship. The Dairy Board might be spared inconvenience and cost through “exemption of analysis certificates” for products of the same composition which it regularly ships. Until now no matter how frequently the same product was shipped each shipment had to carry long scientific documentation of its composition.