Sir Robert predicts tougher European trade barriers

Press, 9 December 1988, Page 6

Sir Robert predicts tougher European trade barriers

By

PATTRICK SMELLIE

Trade barriers are likely to be strengthened against countries that are not members of the European Economic Community, said the former Prime Minister, Sir Robert Muldoon, in Auckland yesterday.

Addressing the Cosmetic, Toiletries, and Fragrances Association, Sir Robert said creation of a common market within the E.E.C. in 1992 would lead to “great disruption for European producers.”

“There are far more barriers to free trade inside the community than

most people realise, and there is no doubt that the first years following 1992 will see major restructuring of European industry,” Sir Robert said.

“With the exception of Britain and (West) Germany, the remaining members of the Community would be quite happy to see the external walls of the protectionist fortress rise somewhat while they settle down their internal problems.” Other problems that should be given close attention were the United States’ "twin deficits” and a trend to the election of

Latin American leaders prepared to default on loans.

Failure by the administration of the Presidentelect, Mr Bush, to deal with the United States budget and trade deficits would lead to more protectionism in Japan and Europe. The newly elected president of Venezuela had campaigned on his willingness to reduce the country’s debt — through default if necessary — and at least one candidate in the three presidential election campaigns taking place in Latin America was putting forward the

same platform. Sir Robert predicted no upturn in the New Zealand economy before the middle of next year — and then only if the Government changed its economic policy. He advised people to “play it safe” in the meantime.

“If the international economy remains in good shape, New Zealand could, inside the next decade, move back into a sound position, but no-one at the present time could confidently predict that that is what will happen,” said Sir Robert.