N.Z.-U.S. trade has grown despite row

Press, 24 February 1986, Page 18

N.Z.-U.S. trade has grown despite row

PA Wellington Trade between New Zealand and the United States has grown in volume and value since problems erupted over A.N.Z.U.S. Trade between the two countries has reached its highest dollar value yet.

This was confirmed on Thursday by the vicepresident and senior international economist of the Crocker National Bank in San Francisco, Dr Thomas Leyman, and New Zealand’s Trade and Industry Department New Zealand exports to the United States between January and September last year, calculated on an annual rate, reached more than a SUSI billion, representing a 15 per cent increase, Dr Leyman said. New Zealand purchases from the United States over the same period reached SUS 763 million, representing a 6 per cent increase. Based on what he cal-

culated to be a 4.4 per cent devaluation against the United States dollar over this period, the figures showed a real increase in volume of trade of about 10 per cent D.T.I. figures show that trade between the countries increased in value from just over SNZI billion in 1983-84 to SNZI.6I billion in the 1984-85 June year. Beef exports, for example, increased in value from SNZ423 million to SNZ6SO million between 1983 and 1985.

Lamb exports went from SNZI4 million to SNZ33 million; total dairy exports from SNZ22O million to SNZ2BO million; and fish and shellfish exports from SNZB9 million to SNZIB4 million. In volume terms lamb virtually doubled in volume exported during this period, from 5747 tonnes in 1983-84 to 10,671 in 1984-85. Beef went from 135,000 tonnes to 164,000 tonnes.

The department’s Americas trade policy division director, Mr Brian Hickey, confirmed that while having some effect, the devaluation of the New Zealand dollar last year could not account for all of the marked increase in value of export receipts. Dr Leyman emphasised that the United States runs a trade deficit with New Zealand, but a trade surplus with Australia.

Trade between New Zealand and the United States “is there and it is growing.”

But he cautioned against too much optimism, saying that the marked decrease in value of the United States dollar recently could cut purchases with the rest of the world.

Also, the United States Farm Bill passed in January was expected to lower domestic prices for the lower grade cuts of beef which New Zealand also supplied.