Dairy trade eorald clot C.E.R. deal

Press, 16 August 1988, Page 1

Dairy trade eorald clot C.E.R. deal

By

BRENDON BURNS

in Canberra

Agreement has still not been reached between New Zealand and Australia on how dairy product trade will be governed under the new closer economic relations agreement, due to be signed on Thursday. Australian officials in Canberra last evening suggested it was possible Thursday’s signing might have to be delayed, or dairy products not included in the agreement. As eleventh-hour negotiations continued, the Australian dairy industry yesterday called on their Government to delay signing. While the Prime Minister, Mr Lange, was leaving Wellington en route to initial the new transTasman trade deal, the Australian Dairy Farmers’ Federation president, Mr Pat Rowley, was arriving in Canberra to lobby Ministers. He said New Zealand had refused to agree to conditions for fair trade and Australia’s dairy farmers could face price-cutting moves by the New Zealand Dairy Board. Australian officials said an agreed form of words had been reached with New Zealand representatives. However, they said

the proposal was still subject to argument on its status. Australia wants to have the proposal given status in the protocols of the treaty which provides for C.E.R. between the two countries. New Zealand is reluctant to accept this, and has made an alternative suggestion. Australian officials will make a decision today on whether this is acceptable. If not, Thursday’s signing could be jeopardised or dairy products removed. “There’s a chance it could all come unstuck,” said one Australian official. Mr Rowley said the Australian Government should not sign the new C.E.R. agreement if it does not have a deal on dairy products which gives some safeguard to Australian producers. “We’re saying very bluntly that this issue is so important in our view, that we’re calling on the Prime Minister (Mr Hawke) to delay the signing until it’s sorted out,” he said. He helped draft a letter sent last month by the Australian Minister for Primary Industry, Mr Kerin, to New Zealand’s Minister of Agriculture, Mr Moyle. The two-page letter is said to

represent agreement at the Ministerial talks in Christchurch in June. This meeting provided the surprise announcement that dairy products would be included in free trans-Tasman trade from July, 1990. Mr Rowley said the letter sought an exchange of letters which provided some assurance to Australian dairy farmers. It wanted the New Zealand Government to direct the New Zealand Dairy Board to comply with official trade policy. Specifically, it required the board not to cross-subsidise or use predatory pricing in the Australian market. Mr Moyle said 10 days ago that a reply would be made soon. It has not yet been sent, as negotiations continue. Mr Rowley said his members welcomed C.E.R., but wanted fair trade. The Dairy Board was a monopoly, with power to ruin smaller Australian producers. The board had acted properly until now, but the potential for unfair practices had to be minimised. “The issue is simply this: we are not walking away from C.E.R. but we want competition from the New Zealand dairy industry to be on a fair basis."