Aust. and N.Z. timber industries reach solution

Press, 26 February 1983, Page 24

Aust. and N.Z. timber industries reach solution

PA Auckland A C.E.R.-type solution has been reached to remove the threat of Australian countervailing duty actions which has been hanging over the New Zealand softwood timber industry since last year. The proposed settlement, reached after talks between the two countries in Auckland last week, gives a tradeoff on the volume of New Zealand timber exports to Australia rather than any further price increase. The Australian timber industry has agreed to seek suspension of the Australian countervailing duty action in return for a “reasonable limitation” on the volume of dressed timber which will be exported to Australia. Exports will be monitored by both Governments. The compromise is the first clear settlement reached on the issue since the signing of the Closer Economic Relations agreement with Australia and goes hand in hand with an agreement on dumping reached last week. The Auckland meeting followed up discussions between the Australian and

New Zealand softwood timber industries and Government officials held in Sydney in December. The New Zealand industryhad sought the continued export of dressed New Zealand radiata pine and Douglas fir timber to Australia without penalities, while the Australian industry was deeply concerned over the severely depressed condition of' its timber market and the industry in general. The undertakings made to the Australian Government by large New Zealand exporters should allow trade to run on a satisfactory basis, the two industries now believe. The industry meetings were convened' and led by the managing director of N. Forest Products. Mr D O. Walker, and the general manager, timber division, of the Mount Gambier company Softwood Holdings. Ltd. In a joint statement, both expressed satisfaction with the result. “This showed a real desire on both sides to reach a satisfactory solution to a problem which has had disturbing implications for the timber industries, and for

Closer Economic Relations and good trading relationships generally between Australia and New Zealand. ’’ it said. The Australian industrywill now request the Australian Minister for Industry and Commerce to suspend his consideration ol the countervailing action against New Zealand timber imports. Australia had contended that the New Zealand export tax incentives constituted subsidies to New Zealand exporters. Details on the luture volume of New Zealand timber exports which would be acceptable to Australia, and how these would be monitored, have not been laid down in detail. However, as part of the agreement, the two industries have decided to cooperate in promoting uses and sales of radiata pine timber in Australia and third world countries. As a result of the meetings. large New Zealand exporters have confirmed undertakings to the Australian Government to observe as minimum export prices the new scale of normal values set by the Australian Cus-

toms Service to settle the wider dumping issue. This resulted from a detailed investigation of New Zealand domestic timber prices. ' These values are at acceptable levels for the New Zeaaland exporters." the statement said. "Anti-dumping measures will not now arise on NeuZealand timber sales in Australia. provided normal values are observed as minimum export prices. ” It is believed that the new "orderly marketing’’ compromise will be accepted by most of the smaller NewZealand timber exporters. Opposition to the proposed trade-off by some sections of the industry appeared to dissipate when the New Zealand delegation learned that the Australian industry was genuinely surprised at just how low Australian customs had set the new normal values. A spokesman for the New Zealand Sawmillers Federation said that its members welcomed any agreement which enabled co-operation with its Australian counterparts.