Mr Moore downplays butter access threat

Press, 27 January 1988, Page 3

Mr Moore downplays butter access threat

By

BRENDON BURNS,

political reporter

. Any European Community move to cut New Zealand butter exports at this time would be a default on a promise to review world trade, said the Overseas Trade Minister, Mr Moore, yesterday.

Mr Moore was responding to a report quoting French members of the European Parliament as suggesting the case for continued butter exports to Europe had been damaged. The Parliament’s vicepresident, Francois Musso, a Corsican farmer, said France would take a harder line than ever against New Zealand in this year’s round.

anti-nuclear policies could cost it Britain’s support in the butter talks.

“The (European) Community made a commitment not to take any further trade restrictive measures before the results of the new G.A.T.T. round emerge,” said Mr Moore.

Officials said this was how New Zealand would view such a reduction although the community would be likely to argue differently. New Zealand also had the European Community’s original commitment, negotiated when Britain joined the market, not to frustrate efforts to diversify our butter markets, said Mr Moore.

"It is quite obvious from the reported statements of a number of important European politicians that Mr Lange has soured their attitude,” he said.

Mr Moore, in response, said the Government strongly rejected the suggestion that its position on Mafart would have adverse consequences on butter access to Britain.

Officials suggested this referred to the “standstill” provision suggested at the start of the latest G.A.T.T. round (the General Agreement on Tariffs and Trade is the world’s rule book on international commerce). The round was not likely to be completely renegotiated for at least another two years, the officials said. “To further reduce butter access now would be to default on that promise under the G.A.T.T.,” said Mr Moore.

New Zealand’s special trading relationship with the European Community was in jeopardy — and not only with butter.

France, with Ireland, had historically opposed New Zealand’s case for exports. Deals had always been struck which reflected abalance between such views and those of countries supporting continued access for New Zealand butter.

This was because of the rhetoric of the Prime Minister, Mr Lange, in criticising the return to France of the Rainbow Warrior bomber, Alain Mafart, and French policies in New' Caledonia. British members of the European Parliament were also reported as suggesting New Zealand’s

Yet, .this continued to occur, with disposals of European butter surpluses undermining our market in the Soviet Union.

“A number of other products including sheep meats and those of horticultural origin could be affected if the European Community decides to take a firmer line.”

The Opposition’s associate spokesman on overseas trade, Mr Rob Storey (Waikato), said the Prime Minister’s “shoot from the lip” style might have cost New Zealand its butter exports to Europe.

Mr Storey said any progress for New Zealand that is made in liberalising world trade through this G.A.T.T. round could be torpedoed by a "fliplipped Prime Minister.”

This year’s butter round, for access beyond 1988, was slightly different,” said Mr Moore.