‘European trade reforms could harm butter market’

Press, 24 March 1988, Page 51

‘European trade reforms could harm butter market’

By

PETER HALLWRIGHT

NZPA London

, Changes to European Community farm policy and the prospect of global farm trade reform meant short-term trouble . for New| Zealand's butter exports to Britain, said. the Minister I of .Overseas Trade and Marketing, Mr Moore, j i . After meeting the European Agriculture Commissioner. fcrans Adriessen. in feruskels. Mr Moore said; E.C. plans to .jcurb dafrv su-rpiuses- could ■ be good for Newt Zealand exports to other markets m the long term. M ’ "But pn the dominant,. British market, which itf» still thej most importani market L- 40 per cent •!>? ouri production and I the .

best pricels t— we are tip gainst the!' chainsaw," Mr Moore said, j • I . The European attitude, pressed -firinly on the Minister by| Mr Andriessen was thiit New Zealand would have! to share the pain of jthb E.C.'s ! prjoannual, cut iin butter 'production. i ] it was also possible, the Communiltyijwould want to cut the ! present] butter quota of ..7-1,500 tonnes (which will expire in August) to (ensure it was kept low-in case G.A.T.T. talks ' firnied up and locked in I global trade agreements ; before preceding towards liberalisation. -I The E;C„ attitude (could come down to saying: "What I have got I keep, and what you have got'l

negotiate,” i I Mr Moore said.. However! after : attending an informal meeting of trade Ministers in West Germany the Minister I said G.A.T.T. trade talks had; 1 reached a. "stand off,' with wide views among'the 95 members about the range and pace of j farm trade liberalisation. ' ]. , j' J i I However,l sheepmeat access to the E.C. seems ■ secure, thanks to I a G.A.T.T.-bohnt agreement that! gives New Zealand a. lower tariff, in return for a promise io keep exports below 245 j 500 ' tonnes a Vear — a ceiling which the country's struggling farmers hdve never reached. I | ( Mr Moore said the E C. was in no position to rene- . gotiate the! t?ijnding agreement, although New Zea- , u 1 ■ I 1■

i!' I ! ' land would listen to whatever, the Community had' to say. So far the E.C., said it wanted Third World countries voluntarily to restrift exports and accept minimum prices. Of more I concern, he said, was the possibility that E.C. farmers would put more land into sheepfarming as i the Community stabilised cereal production. I Mr Moore, whose trip to Europe follows up one by the Foreign Affairs Minister, Mr Marshall, said he was on-a (‘probing” mission in preparation for his return visit 1 with the Prime Minister, Mr Lange, in April. “Now I (can go home and put the final touches to the strategy and talk to the dairy and ' meat people,” he said.lj ' . < .