Fears held for sales in U.S. over N-issue

Press, 7 February 1985, Page 27

Fears held for sales in U.S. over N-issue

PA Wellington The sale of New Zealand products in the United States could be severely hampered by the Government’s action on nuclear warships, according to a senior trade representative. Trade with the United States was worth $1 billion to New Zealand last year, but many official sources believe this has been put at risk by the Government’s decision to ban nuclear-cap-able warships entering New Zealand ports. New Zealand has an enormous task to keep its position in the United States, according to the director-general of the Manufacturers’ Federation, Mr David Walker.

Mr Walker spent a month on a trade mission to the United States recently meeting officials and business delegates. “The average man in the street in America does not understand why New Zealand has taken this stance. The thing that concerned me was all that they perceived was that ‘New Zealand doesn’t like America, therefore why should we buy your products?’

“I think our politicians and officials are going to

have a big job ahead in really promoting to the small man in the street who buys our exports why we are doing this. I am concerned that they don’t understand,” Mr Walker said.

However, he saw no evidence of United States politicians or officials taking any action against New Zealand’s trading activities. A Planning Council staff member, Mr Peter Rankin, said the effects on trade depended on the way the United States public saw the issue.

Mr Rankin, who was director of the world food project with the Centre for Strategic and International Studies in Washington, said that New Zealand would hold its position if trade remained competitive.

“But a lot of the answer on the impact on trade depends on how the issue is handled and whether it is seen as a slap in the face to the Americans,” he said. “Where you are meeting the buyer’s need at a competitive price, you are in a sound position, in spite of political fluctuations.” The group manager of public relations for the Meat Board, Mr Barry Saunders, said there was no immediate threat.

“Our products are constantly under the threat of action by Western nations. If something new came up in the United States, you would have difficulty in determining whether it had any link with the nuclear question,” he said. New Zealand's meat trade with the United States was worth $477 million last year, with substantial sales of beef. The sale of manufactured goods earned $ll2 million and this is a market with increasingly bright prospects. The general manager of the Wool Board, Mr Bernie Knowles, said he was concerned about the deterioration in relationships with the United States.

"The . board appreciates that trading relationships are always to an extent dependent on the good will that exists between the nations concerned and that anything which diminishes that good will must be cause for concern,” he said.

However, the board does not believe trading relationships will be severely damaged and has taken note of assurances from the United States. New Zealand’s wool trade with the United States was worth $Bl million during 1984.