War could harm trade

Press, 11 May 1984, Page 3

War could harm trade

NZPA-Reuter Bahrain Trade with the Gulf region would suffer badly if the Iraq-Iran war were to expand, said the Minister of Foreign Affairs and Overseas Trade, Mr Cooper. Before he left for home yesterday at the end of a three-nation Gulf tour, Mr Cooper said that New Zealand was “very concerned” about an expansion of the war.

“We know that any more dislocation of trading through a widening of the fighting would be very difficult for New Zealand,” he said.

Mr Cooper, who had talks with senior officials in Saudi Arabia, Bahrain and Qatar, said New Zealand wanted the Gulf war to end, “so that we can turn our attention to trading more effectively” with countries in the

region. New Zealand’s main exports to the Gulf region are sheepmeat and dairy products, and it imports most of its oil requirements from the Gulf, mainly Saudi Arabia.

Mr Cooper said New Zealand food exports to the region faced tough competition from subsidised food exports from the European Economic Community, especially dairy products. New Zealand’s food exports to Saudi Arabia alone were worth SNZ94 million a year, while they ran at $23 million to Bahrain and $6 million to Qatar, he said.

He said that while New Zealand sheepmeat was unchallenged in the area, the Government was concerned about the possible involvement of United States food aid in the Middle East.