Minister hopeful on G.A.T.T.

Press, 24 June 1985, Page 4

Minister hopeful on G.A.T.T.

A move towards even 1 per cent more free trade in agricultural products between nations would mean a great deal to New Zealand, said the Minister of Overseas Trade, Mr Moore, in Christchurch last week.

Mr Moore has from negotiations in Stockholm on the General Agreement on Tariffs and Trade (G.A.T.T.) and a visit to Iran. “I am hopeful that one outcome of the Stockholm meeting is that there will be further negotiations in Korea in October which will give an impetus to a new G.A.T.T. round,” he said. “Any country can request that its particular interests

are put on the agenda for this next meeting and New Zealand’s agricultural products will be one of these.” The United States has indicated that it will start a new trade round next year with or without agreement of the 90-nation G.A.T.T. trade group. With support from the European Community and Japan the United States has called for preparatory talks on a new world trade round, which Mr Moore said would probably be in Korea in October. Several developing countries, led by India and Brazil, oppose the round. They say that past negotiations favoured. the devel-

oped nations and past agreements had not been honoured.

The United States says progress towards a new round is urgently needed because of the growing signs of protectionism in world trade. While the United States is prepared to discuss any items proposed by other countries, it insists that the relatively new service sector, including insurance, banking and tourism, be discussed.

Developing countries have rejected any discussion of the service sector and insist that the new round be confined mainly to negotiations

on trade in visible goods and agriculture. Mr Moore said he thought the visible goods and agriculture sector would take less time to resolve. “I think this sector could be dealt with in three to four years time while the service sector will probaby take a long time to negotiate,” he said. During the meeting in Stockholm, India and Brazil appeared to be about to walk out over the various disagreements. “We have argued that it is in the full interests of other countries like those in the European Economic Community to free up trade

more in agricultural products. By buying more of our products the E.E.C. could drop food prices 20 per cent and free up about SUS3O to ?USSO billion of taxpayers’ money in other areas.”

The entry of Spain and Portugal into the E.E.C. presented new problems for the sale of New Zealand’s agricultural produce to the E.E.C., Mr Moore said. “I want a standstill at least of the present situation so that we don’t lose out in Europe. In the last 10 years our agricultural products have been sliding back in Europe and I seek at least a halt to this trend,” he said.