E.C. offers challenge

Press, 14 September 1988, Page 43

E.C. offers challenge

The formation of the single West European market by the end of 1992 offers challenges to exporters, according to four New Zealand trade commissioners at a forum in Christchurch yesterday.

Mr Len Donaldson, trade commissioner, Bonn, said that when the European Economic Community was first formed in 1957, the original six members agreed to phase out tariffs and adopt a common external tariff, which was achieved by 1968. But other barriers, such as technical standards, differing currencies, the flow of capital, and labour restrictions remained, and the aim was to end these by forming a single internal market by 1992. The 12 member States of the European Community had set a task of forming “a Europe without borders.” Such an undertaking required the passing of more than 300

legislative acts by various members, he said. What it meant for exporters was the formation of the world’s largest market, containing 320 million people. The commissioners expect that access to the market may be easier in' some respects, partiuclarly when one of the members accepts that a product meets required standards. It will mean that other member States will also accept the product without requiring testing.

The commissioners believe that the time for exporters to move on Europe, which is New Zealand’s largest market, is now. Already, French banks have been buying banks in other Community countries in anticipation of a unified finance system. The Japanese have also been buying Western European firms. Trade fairs are seen as an important avenue for

New Zealand exporters to introduce their goods. Mr Wilbur Dovey, trade commissioner, Paris, said that New Zealand firms, including G. L. Bowron and Co., Mair Astley, and Waitaki International, would be participating in the annual Semaine du

Cuir, in Paris, the world’s biggest leather and skin trade fair. Although he recommended that exporters consider France as an option, he said that the French did not like trade deficits. He recommended that New Zealanders should consider French products were of a high quality, including such things as champagne and inflatable rafts.