THE PRESS FRIDAY, MAY 24, 1985. Spain, Portugal, and N.Z.

Press, 24 May 1985, Page 16

THE PRESS FRIDAY, MAY 24, 1985. Spain, Portugal, and N.Z.

When Spain and Portugal join the European Economic Community on January 1, 1986, the two countries will assume a significance for New Zealand that they have not had before. Mr O’Flynn, the Deputy Minister of Foreign Affairs, is probably the first New Zealand Minister to have visited the two countries. The importance of Spain and Portugal to New Zealand comes because they will have votes in Community organisations and many of the decisions made by the Community affect New Zealand. Mr O’Flynn expects closer relations between Spain and New Zealand, and Portugal and New Zealand, to develop after his visit. New Zealand will certainly need to be aware of the way in which Spain and Portugal vote in the European Economic Community, and it will generally be helpful if relations are enhanced. So far trade is not extensive between New Zealand and Spain, or New Zealand and Portugal. In the last trade year New Zealand exported goods worth about $22 million to Spain and imported goods worth about $25 million. Raw hides and skins accounted for $l6 million worth of the exports. Yarns and fabrics were important in the imports. To Portugal in the same year New Zealand exported goods worth $12.3 million, mainly cereals and cheese. Goods imported from Portugal, mainly cork, were worth about $5 million. Given the low level of trade, the establishment of a diplomatic post would not be justified on trade grounds alone. However, Spain will be a significant sheep producer within the E.E.C. and if there is no New Zealand representative in the two

countries, they will be the first members of the E.E.C. in which New Zealand is not represented. The establishment of diplomatic posts needs to be weighed against other uses of money and manpower from the Ministry of Foreign Affairs. At the moment the New Zealand Ambassador to France is accredited to

both Spain and Portugal. The Spanish and Portuguese Ambassadors to New Zealand are both resident in Canberra. With the accession of Spain and Portugal to the European Economic Community, the Community will have 12 members. The Community began with six members, then swelled to nine at the time that Britain joined, then to 10 when Greece joined. The larger E.E.C. is also a less manageable E.E.C. The decisions are taken by consensus. As numbers grow, consensus becomes more difficult to achieve. As the number of members increases, the countries bring different concerns and problems. Decisions take longer to reach. When Spain joins, for instance, the agricultural acreage of the E.E.C. will increase by 29 per cent and the agricultural population will increase by 32 per cent. In those figures alone lie social and economic problems. To some extent the accession of Spain and Portugal will change the nature of the Community. They will give weight to the southern European and Mediterranean grouping within the E.E.C. To this group the production of olive oil and wine are more important than the production of beef, grain, and dairy products which are the concerns of the northern European members of the E.E.C. The resources of the Common Agricultural Policy will be stretched even further. The C.A.P. will not be applicable in its entirety to agricultural production from Spain and Portugal for some years, but the interest and presence of Spain and Portugal will be quickly felt.

All this will make the E.E.C. more complicated for its members, and for New Zealand, which needs to be able to deal with all the members. Forming a closer relationship with Spain and Portugal will be a necessary move on the part of New Zealand before too long.