Plans to discuss effects of G.S.P.

Press, 29 May 1985, Page 3

Plans to discuss effects of G.S.P.

NZPA-Reuter Singapore

New Zealand said yesterday that it planned to discuss changes in its trade preference scheme at a high-level meeting with the Association of South-East Asian Nations.

The Deputy High Commissioner, Mr George' Horsburgh, told a press conference that the effects of its new generalised system of preferences (G.S.P.) on A.S.E.A.N. markets would be discussed in Kuala Lumpur in July after an A.S.E.A.N. Ministerial meeting.

From July 1, Singapore and Brunei along with 11 countries from other regions would be eased out of its G.S.P., a scheme allowing preferential access for poor countries in markets of richer States.

“One of the things the New Zealand delegation will no doubt be saying is that broader changes in the New Zealand economy will have beneficial effects in terms of the ability of A.S.E.A.N. countries to market their goods to New Zealand,” Mr Horsburgh said.

The G.S.P. changes were part of an overhaul of New Zealand’s economy, including dismantling of import licences. “The benefits which will result from that freer access to New Zealand will far outweigh, in our view, any loss that a country will sustain through losing its G.S.P. preference,” he said. Mr Horsburgh said the

economic prosperity of some exporting countries had changed since 1972 when the scheme was implemented. “It is a simple fact of life that we are no longer relatively as well off as we were before. Singapore on the other hand has made enviable progress. It is not worse off than New Zealand,” he said. Responding to Singapore’s criticisms that it was not consulted on the changes, Mr Horsburgh conceded “we certainly wished we had paused a little longer” but his Government was “impatient” to put its house in order.

Mr Horsburgh said the other A.S.E.A.N. countries — Malaysia, Thailand, Indonesia, and the Philippines — were not affected in New Zealand’s delisting criteria. Countries whose gross national products (G.N.P.) exceed 70 per cent of New Zealand’s would lose their G.S.P. status.

Singapore has a per capita income of more than SUS7OOO compared with a New Zealand G.S.P. ceiling of $U55545.

Only 23 per cent of Singapore’s total exports of about

330 million Singapore dollars (SUSISO million) to New Zealand qualify for G.S.P. The Minister of Overseas Trade, Mr Moore, said on Radio New Zealand Morning Report yesterday that where an economy reached a certain level of affluence and growth it ought not to have special preference above local New Zealand manufacturers.

“We are here to get jobs for our people. Singapore is in a special situation because of her growth. Brunei, of course, is an extremely wealthy little country. “It has an oil base and its average income is much higher than New Zealand’s. They do have free education, free housing, and all sorts of policies such as that, policies that we only dream of in New Zealand. “But the reality is that Singapore is a leader in A.S.E.A.N. She needs A.S.E.A.N. more than other countries and will be fighting a battle for it.”

Mr Moore said the threat from Singapore was serious.

“I was left in no doubt when I was there it was a threat and it is a danger.”