On Yugoslavia’s list

Press, 17 March 1982, Page 26

On Yugoslavia’s list

Yugoslavia has not denied that there is a list of 10 countries, including New Zealand, with which it has a balance of trade deficit. What it has denied is that the list is meant to limit the trade between Yugoslavia and the countries on the list. It is meant, Yugoslav officials say, to monitor the trade. New Zealand undeniably has a favourable balance of trade with Yugoslavia. In the year ended June, 1981, New Zealand exported goods worth. $16.8 million to Yugoslavia and imported goods from Yugoslavia worth $BBO,OOO. In terms of a trade ratio that is about 19 to one. World-wide, trade negotiators point to a balance-of-trade deficit with another country when they want to sell more to that country and when another country points to a deficit the conversation immediately turns to multilateral trading. The use of a device by Yugoslavia, whether monitoring or controlling, is a reminder to other countries that Yugoslavia is in serious balance-of-payments deficit and is watching where its money is. going. The condition is not unfamiliar to New Zealand. Yugoslavia buys mainly wool from

New Zealand. Of the $16.8 million exports to Yugoslavia last year, $15.5 million consisted of wool. Much of the imports from Yugoslavia consist ,of medicines and other pharmaceutical products.. In fact, last year’s imports from Yugoslavia were particularly low. The previous year they amounted to $2 million. In the 1977 year Yugoslavia supplied New Zealand with some , electrical power, generating equipment and the country, which is represented by an ambassador in New Zealand, will no doubt be keeping a close eye on the contracts for equipment in the hydro-electric schemes in the South Island. Although the trade, with Yugoslavia is small, the disclosure that there was such a list of countries — and that New Zealand was on it — demonstrates a need to watch that trade does not become so lop-sided that it causes resentment. New Zealand originally introduced its import-licensing scheme to help its balance-of-payments problems. Although it is a public scheme some of its workings may be as obscure as the workings of the regulation which has just become public in Yugoslavia.