Crucial talks on C.E.R. tomorrow

Press, 27 October 1982, Page 6

Crucial talks on C.E.R. tomorrow

NZPA staff correspondent Sydney The Australian Minister of Trade and Resources, Mr Douglas Anthony, is expected to want a heavy price from New Zealand when he meets the Prime Minister, Mr Muldoon, in crucial closer economic relations talks tomorrow.

In return for agreeing to the New Zealand insistence that there be no change in the dates for the phase-out of import licensing (1995) and performance-based export incentives (1987). the Australians want what officials term “very significant" increases in the initial Australian access to the New Zealand market. Senior officials met in Canberra last week to try and sort out remaining differences over the C.E.R. agreement, but had to leave the final negotiating to politicians.

Mr Anthony will leave for New’ Zealand today and will have talks with Mr Muldoon in Wellington tomorrow. He will return to Australia on Friday and then whatever has been agreed will have to go before the Federal Cabinet for approval or rejection. Although one Canberra official close to the heart of the negotiations described last week's talks as “constructive,” others have a different viewpoint. They said the Australian side took a strong line, insisting that if they did not get what tjiey wanted the whole deal might be off. No precise details of what exactly the Australians are asking for have been revealed, although it is believed they have been looking at greater access through an acceleration of the 10 per

cent a year growth formula for the liberalisation of import restrictions. Also under consideration has been the possibility of a higher base access level, at present $200,000 or 5 per cent of the domestic market in New Zealand, whichever is the lower, through raising the dollar value and splitting the import item code so the amount would apply individually to four or five items instead of a total group as at present.

Officials said there was strong opposition to the C.E.R. agreement coming from the Australian Department of Industry and Commerce, which was heavily influenced by the strong objections from some sectors of Australian industry which see New Zealand having an unfair advantage in the early years of the agreement through the export incentive scheme and the long phaseout time for import licensing.

Mr Anthony is expected to try to get Cabinet approval for any deal struck before he goes overseas again on November 18 for the G.A.T.T. negotiations. Although time is running out, officials are still working towards having the C.E.R agreement sewn up for implementation on January 1 next year. However, Mr Muldoon has forewarned that the start date may have to be put off until October of next year, or even January, 1984, if agreement cannot be obtained and necessary legislation passed in time.

This has in part been interpreted in Australia as another move by Mr Muldoon to put pressure on the Australians to come to the party. The Australian Federal election is scheduled for

about October next year and it is doubtful if the Australian Prime Minister, Mr Fraser, would want the C.E.R. agreement coming into play about then, when it could be used against him by manufacturers and their political backers. Mr Anthony’s trip to New Zealand coincides with that of another dignitary important to New Zealand’s trade — the European Community Agriculture Commissioner, Mr Poul Dalsager.

Also included tomorrow in a hectic day for New Zealand’s political leaders are calls by Lord Belstead, a British Minister of State at the Foreign and Commonwealth Office.

Mr Dalsager will start today a five-day round of calls on New Zealand’s leaders, farms, industry, and tourist points in what is viewed as an important opportunity for him to see firsthand New Zealand and its agricultural interests.

He became Agriculture Commissioner in January last year, succeeding Mr Finn Olav Gundelach, of Denmark, who visited New Zealand in 1979.

Mr Dalsager will see Mr Muldoon immediately before a Ministerial luncheon on Thursday, later visit the Leader of the Opposition, Mr Rowling, and go to Lincoln College and Queenstown. Early next week he will see a dairy farm and factory, in the Waikato.

Mr. Dalsager was Denmark’s Agriculture Minister during Mr Gundelach’s term as Commissioner.

Lord Belstead, a junior British Foreign Minister, is due in New Zealand today. He will stay until Saturday, making a familiarisation tour taking in Auckland, Wellington, and Rotorua.