Incentives issue not related to row

Press, 13 March 1985, Page 18

Incentives issue not related to row

PA Auckland The United States attitude to New Zealand export incentives had not hardened because of the A.N.Z.U.S. row, said the Minister of Overseas Trade and Marketing, Mr Moore. Mr Moore, who returned last week-end from a brief visit to the United States to discuss the American insistence that New Zealand export incentives be dropped by the end of the month, said the two issues were unrelated. The American attitude to the incentives had been consistent since a 1981 exchange of letters betwepn the two Governments.

Mr Moore produced the letter from the United States special trade representative, Mr William Brock, and the then Minister of Overseas Trade, Mr Brian Taiboys. In the letter, the United States promised to terminate its application of the General Agreement of Tariffs and Trade to New

Zealand if the incentives were not phased out by April 1, 1984.

A letter from Mr Brock to Mr Moore, dated March 7 this year, confirms the 1981 stance. If the incentives are not lifted by the April 1 deadline, New Zealand exports to the United States will face countervailing duties up to the amount of the incentive.

Mr Moore agreed that having the export incentives deadline being confirmed in the middle of the A.N.Z.U.S. dispute was a remarkable coincidence but “in my judgment it is only that.” “They have not advanced anything because of A.N.Z.U.5.,” he said. “The issue is divorced from A.N.Z.U.S. and is no more difficult to argue because of our foreign policy.” Mr Moore said New Zealand had not been singled out. Other countries which had not dropped subsidies were being treated the same way.

He said the Muldoon Government had not taken any steps in four years on the incentives issue. The iabour Government had already begun phasing out the incentives. Half would be gone by the April 1 deadline.

“I would like to have thought that with the kind of moves we have made as a new Government, the United States might have given us an extension, but that was not to be.

“The Australians phased out their incentives far quicker than we have done. We had the time but it was squandered. We are trying to make up as much time as possible in a few months, but we have not made up enough.

“Had we not taken the steps we have and begun to phase the incentives out, we would have had a crisis on our hands. We do not have a crisis but we do have a problem,” Mr Moore said.