C.E.R. progress pleases

Press, 18 March 1982, Page 23

C.E.R. progress pleases

The executive committees of the Australian and New Zealand arms of the Australian/New Zealand businessmen's council met in Auckland yesterday to discuss progress on closer economic relations between the two countries in what the council hopes will be its last meeting prior to C.E.R. being finally agreed between the two countries. The joint committee expressed satisfaction at the developments that had taken place since it last met in May. However, the committee believed that it was extremely important for the few outstanding issues on the C.E.R. package to be resolved quickly in order that C.E.R. be finalised at the earliest time.

In respect of the few outstanding issues the Australian committee felt that the elimination of import licensing on trans-Tasman trade should have an ultimate termination date. On import incentives, it said that importance should be attached to their harmonisation or elimination in trans-Tasman trade within a reasonable period. The New Zealand council recognises the concern of the Australian council on import licensing. Considerable movement has already been made by New Zealand in respect of import licence elimination and a number of industries have already voluntarily agreed to an accelerated phase-out. This, coupled with the expectation of adjustment of

the differing forms of export incentive existing within the two countries, indicates the likelihood of reaching a reasonable accommodation on these matters. The joint council believes that it is important that the negotiators address themselves to these problems promptly and considers that for most industries a termination date within about 10 years is reasonable. So far as dairy products are concerned, both councils felt that this would be best left to the industries on both sides of the Tasman, which, it was thought, were already close to agreement. The Australian council said that there was a strong desire in Australia for the C.E.R. package to be deter-

mined quickly and that it was hoped there would be no delay in the final discussions. The New Zealand council endorsed this view. The joint committee reaffirmed that once C.E.R. existed between the two countries this agreement could provide a solid foundation for companies and industries in both countries to co-operate with each other in third-country markets. As soon as this happened, real benefits would be achieved for both countries. The joint committee agreed that C.E.R. would necessitate adjustment on both sides of the Tasman and some rationalisation would be necessary. However, over all C.E.R. was a vital forward step for Australia and New Zealand.