Exporters ‘in for tough time’ from Democrats

Press, 10 November 1986, Page 7

Exporters ‘in for tough time’ from Democrats

PA Auckland New Zealand, Australia and other exporters of agricultural produce are in for a "very tough time” from protectionist sentiments of United States Democrats, says the Australian Minister for Trade, Mr John Dawkins.

Referring to trends in the United States elections, he said. “Our internationally competitive industries in agriculture ... are stifled by rampant protectionism and unfair trading practices which allow massively subsidised high-cost exports an unfair and undeserved share of the international market.” He told a trade conference that the most urgent task for the United States and the European Economic Community was to find a political means of getting rid of food stockpiles. “The market mechan-

isms are not capable of reducing stocks,” said Mr Dawkins. “The election of a Democrat Senate discourages too much optimism.”

Mr Dawkins said that New Zealand and Australia, — because of their links under the closer economic relations deal — had worked together Jo reduce the "enormous dominance” of world trade by the world trade blocs.

The two countries would continue to work together to secure a better deal for agricultural exports.

He predicted greater economic integration between Australia and New Zealand. The Australian Government was prepared to remove trade barriers as fast as its industries wanted, Mr Dawkins said.

The Australian review of Tasman freight announced earlier in the week was long overdue, he said.

He was a little disappointed more Australians were not aware of trade opportunities under C.E.R. “It is apparent that the benefits of increased liberalisation for Australian exports have been partly obscured by the stronger influence of falling import demand in New Zealand.” This and the continued deterrent of import licences has caused the value of Australia’s exorts to New Zealand to fall in the last financial year by about 2 per cent.

Mr Dawkins said he was optimistic, however, that Australia could lift its performance in the New Zealand market.

Mr Bob McCay, joint chairman of the Australia New Zealand Business Council, said pressure for

trade barriers was coming from the United States farming sector and its “smoke-stack” industries such as steel. He said the American farming sector had been depressed for longer than its New Zealand counterpart. The United States was in the “incredible” position of being a net importer of food, although.it had the capacity to produce far more for its own needs.

“They could probably provide all that they need, but that would require additional restrictions and that could make things very difficult indeed for us.”

Mr McCay said that President Reagan had been a “very good friend to New Zealand” in trade matters and an opposition Congress could water down the President’s power to remove trade restrictions.