Aust. Cabinet approves steps to seal C.E.R. pact

Press, 17 March 1982, Page 1

Aust. Cabinet approves steps to seal C.E.R. pact

NZPA staff correspondent Canberra The Australian Cabinet yesterday approved the concluding of an agreement for closer economic relations with New Zealand.

The timing of the implementation of such an,agreement is still in doubt, with a number of key issues still to be resolved.

The Cabinet considered recommendations and options on the matter submitted by Australia’s Deputy Prime Minister (Mr Anthony) who carries the responsibility for the Tasman negotiations for Australia. Sources in Canberra said that the Cabinet had given the negotiators the mandate to conclude the agreement, which will open the way eventually to a free-trade area between Australia and New Zealand.

Some of the points still at issue are the timing for the phasing out of New Zealand's import licensing, the resolution of difficulties caused by the respective countries' ex-port-incentive schemes, and the conclusion of a written dairy agreement satisfactory to both sides.

Officials are working towards a target date of January 1, 1983, for the implementation of closer economic relations but whether that can be attained could depend on agreement being reached soon on the outstanding matters.

A long consultation period, which, on the Australian side could cause further delays, is also possible because Australian manufacturers and other interests have not been as fully involved as their New Zealand counterparts.

Heads of government departments involved in the negotiations are expected to meet about mid-April. Soon after that, Mr Anthony will probably go to New Zealand to negotiate with the Prime Minister (Mr Muldoon) on outstanding issues that require political resolution. If the problems are solved to each government's satisfaction. the draft agreement would then be made public for discussion and consultation. with a signing of it by Mr Muldoon and the Australian Prime Minister (Mr Fraser) envisaged for later this year. However, with the mass of

technical. legislative, and administrative work required between the draft agreement and the final agreement, the longer , the consultation and resolution of problems takes, the less likelihood will there be of the agreement’s implementation early in 1983, which is New Zealand's aim. But senior officials maintain that with an agreement of this importance, the timing of its implementation is of less significance at this stage than making sure that the agreement is right because. once it is implemented. it will mean an automatic progression, to a total free-trade area.

New Zealand officials are" pleased that a tactic which developed after an address by Australia's Minister of Primary Industry. Mr Peter Nixon, in Adelaide last month, where he argued for more time to conclude the agreement appears to have paid off.

The Minister of Trade and Industry (Mr Templeton), who arrived back in New Zealand yesterday, and the Minister of Foreign Affairs (Mr Cooper), who is still in Canberra, went to Australia to emphaise the importance

of a closer economic relationship between the two countries and to increase awareness of the matter by Australian Cabinet ministers.

With the static created by controversies such as the boycott threat to the Commonwealth Games there was a fear in some quarters that this, coupled with the uncertainties of the Australian political scene, could result, in Australian ministers taking little interest in a closer relationship.