THE PRESS WEDNESDAY, JULY 10, 1985. Japan shows it is serious

Press, 10 July 1985, Page 16

THE PRESS WEDNESDAY, JULY 10, 1985. Japan shows it is serious

By announcing some reductions in tariffs last month, Japan appears to have moved more convincingly than it usually does on freeing up imports. The June 25 package was one of a series of packages over the last few years in which Japan made gestures in response to criticism of its import policies. The main impression given by many of these packages was that Japan was doing the least possible to try to quieten foreign criticism. Sometimes Japan’s efforts appeared to be derisory. However, the June 25 package contained more than token gestures. New Zealand and other countries will hope for continuation of this seeming new mood in Japan about being seen to be serious about imports. Japan’s readiness to move seriously on the issue has almost certainly come about because the United States Congress is in a mood to move harshly against Japan. The American Administration is struggling to hold back Congressional action against Japan and the European Economic Community. Both the Japanese Government and the American Government want another round of talks under the General Agreement on Tariffs and Trade to free trade. Both Governments see this as a way of averting world-wide moves towards trade protectionism. The American Administration has gone as far as saying that if it cannot get agreement to hold talks under G.A.T.T., then it will conduct talks with those countries which will talk about the subject. New Zealand’s interest in having the new talks is largely because there has been an undertaking from some of the major countries that agricultural trade will be included in the new round.

In spite of a willingness to have a somewhat freer outlook about imports generally, Japan has moved only slightly on imports of the greatest importance to New Zealand. Some comparatively minor New Zealand exports to Japan have been affected. The item of greatest importance is methanol,

on which Japan has lowered the tariff from 4.9 per cent to 3.9 per cent. New Zealand had been pressing Japan for a lower tariff, and it is probable that Japan moved in response to New Zealand’s request. The lower tariff will mean that New Zealand would save $421,954 a year if New Zealand continued to export as much methanol to Japan as it did in 1984. Another item affecting New Zealand is sphagnum moss. The tariff has been lowered from 10 per cent to 5 per cent, which would give savings on 1984 exports of $159,471. The tariff on crustaceans and molluscs for seafood has been lowered from 12 per cent to 9.6 per cent. On 1984 exports, New Zealand would save $128,282. On casein glues the tariff has been dropped to 6.4 per cent from 8 per cent. The savings would be $113,412. A number of other items will affect New Zealand’s exports to Japan in similar but fairly minor ways. The effect is hard to determine. The lower tariffs may mean that New Zealand exporters will be encouraged to send more to Japan. New Zealand’s main exports to Japan are aluminium, wool, and dairy products. New Zealand would send more beef to Japan but for the strict quotas imposed by Japan. New Zealand’s biggest export market for cheese is Japan. It seems unlikely that Japan will move rapidly to dismantle some of its main protectionist policies governing agricultural trade. Next month Japan will consider nontariff barriers, which New Zealand regards as important for its trade with Japan. The Japanese acceptance of the fumigation methods New Zealand uses for the cherries it sells to Japan is an important step. This does not mean that New Zealand can export cherries to Japan immediately, but at least one barrier has been removed. If the Japanese show as much seriousnesss about considering non-tariff barriers as they showed about tariffs on June 25, New Zealand will have reason to be more hopeful about its agricultural trade with them.