P.M. expects C.E.R. will be ‘sorted out’ in two weeks

Press, 9 October 1982, Page 1

P.M. expects C.E.R. will be ‘sorted out’ in two weeks

NZPA staff correspondent Brisbane

Remaining technical difficulties in the • closer economic relations trading agreement with Australia should be sorted out within the next two weeks, said the Prime Minister, Mr Muldoon, yesterday.

However, he emphasised that New Zealand would not budge from its stand that the export incentives would not go until 1987 and import licensing until 1995. . Mr Muldoon met the Australian Prime Minister, Mr Fraser, for an hour yesterday, C.E.R. being the main topic discussed.

He said there was no weakening of political will to go ahead with the trade agreement. ‘The two Cabinets have the political resolve to bring it together and make it work, and I don't think there is any weakening,” Mr Muldoon said.

The Australian Deputy Prime Minister, Mr Anthony, this week wrote to Mr Muldoon outlining Australian industry objections and reservations about aspects of

C.E.R.. but according to officials the letter was not as forceful as they had feared it might be.

New Zealand was in essence asked to reconsider the dates rather than being given an outright request to bring them toward, although a forward date was suggested for one area.

The letter also outlined changes required to the initial proposals on intermediate goods, transitional safeguard proposals, the level on initial access for Australian products, which Australian exporters want increased, and the New Zealand allocation of exclusive Australian products, which Australian exporters want increased, and the New Zealand allocation of exclusive Australian licences for imports.

Although Mr Muldoon has said there will be no move-

ment on the terminal dates, officials will sort out a satisfactory compromise on the other issue.

“We are looking at a slightly different approach to phasing in. We may be able to sort out something which may meet Australia’s concern but does not do damage as far as New Zealand is concerned.” said Mr Muldoon.

He would not say if the refusal to budge on terminal dates was acceptable to Mr Fraser.

He also said there might have to be another Ministerial meeting before the Cabinets gave the final ratification to the agreement. Although New Zealand believed the agreement could get under way by January 1 next year, Mr Muldoon appeared to have reservations about the Australian ability to do so.

“I will know the answer to that perhaps a little later,"

he said., Mr Muldoon said one or two of the Australian states (he mentioned Victoria as one) were not happy with the agreement. He could not recall if any of them had so far agreed to New Zealand's request that they be treated the same as other Australian states in terms of purchasing preferences, but said that would not be a sticking point and could be negotiated later.