N.Z. resolute against lamb trade change

Press, 21 October 1987, Page 2

N.Z. resolute against lamb trade change

NZPA London New Zealand has taken a -firm stance as it awaits Europe’s full-scale bid to negotiate lamb imports. The Minister of Overseas Trade, Mr Moore, told NZPA yesterday, “At this point our position is very strong and I see no reason to change it”

Frans Andriessen, the European Agriculture Commissioner, said last week that without voluntary cuts in lamb competition New Zealand could see another disastrous butter-like scenario of E.E.C. stockpiles and dumping. Mr Andriessen, the top bureaucrat at European Community headquarters in Brussels who makes recommendations to European Ministers on agricultural policy, conceded he was not in a strong negotiating position in asking New Zealand to lower lamb exports and raise prices. He said, “If people make the analysis, it might be useful not to immediately say no but look at this very carefully and see what solution can be found.” Mr Andriessen, whose Agriculture Ministers this week consider a plan to reform E.E.C. sheepmeat policy, said he had been able to avoid intervention in the sheepmeat market so far but surpluses were threatening. The Commissioner said he needed international co-operation if he was to “create a climate” in which European Farm Ministers would agree to hold production at 1986-87 levels. Mr Moore said from Athens yesterday, "We always try to be good citizens and partners and we will study any firm proposal when it comes to us. But at this point our position is very strong and I see no reason to change it” Mr Moore has been in Europe "getting a feel” for .the sheepmeat and dairy .issues, particularly .because New,-Zealand’s

E.E.C. butter access agreement expires in August next year. Mr Andriessen expected negotiations to open with New Zealand on lamb soon after the Council of Ministers /debate the sheepmeat regime this week.

Meanwhile, the High Commissioner in Britain, Mr Bryce Harland, reiterated Mr Moore’s stance in an address to the newly formed New Zealand Lamb Promotion Council ip London.

Mr Harland said that “on the New Zealand side we see no need to change” arrangements already negotiated with the European Community.

“Even .if the Community decided that it wished to propose any change, such change could not be made without our agreement

“Full account would need to be taken of the commitment recently given by the European Community, along with other trading nations, to avoid any increase in protectionism pending the outcome of the Uruguay round of trade talks in the G.A.T.T. (General Agreement on Tariffs and Trade).” New . Zealand exports lamb to Europe under a G.A.T.T. agreement to voluntarily restrain annual tonnages to 245,500. In return the tariff was lowered from 20 per cent to 10 per cent. Mr Harland said it worried New Zealand that the European Commission envisaged “raising the price of lamb artificially by acting against imports.

"increased returns are always attractive to the producer, but in the case of lamb they could hardly serve his own interest. ’

“There is no lack of competitively priced alternatives to lamb, and experience has already demonstrated that any increase in price leads to a more than proportionate fall, in demand,” the High Commissioner said.