Trade difficulty in Europe predicted

Press, 27 June 1989, Page 8

Trade difficulty in Europe predicted

By

PATTRICK SMELLIE

in Wellington

New Zealand may face greater difficulty selling to Europe, after it becomes a single market in 1992, said the Leader of the Opposition, Mr Bolger, yesterday.

Back from an overseas trip to Europe, Mr Bolger also said the Government’s anti-nuclear policy was making New Zealand irrelevant in the international arena. This loss of influence was likely to affect attitudes to New Zealand in trade matters, he said. During discussions in Switzerland, Mr Bolger found that countries out-

side the European Economic Community were “getting very nervous.” “If a European economy as strong as Switzerland is concerned, a country as remote as New Zealand has to be concerned that our position inside the community may not be as secure as we might hope after 1992.”

The fear was that trade barriers would come down much more quickly within the E.E.C. than barriers against non-mem-ber countries. The British Prime Minister, Mrs Thatcher, had given an unequivocal assurance that Britain would continue to “bat for

New Zealand,” said Mr Bolger. But this was only one voice among 12. "The market is changing. Europe is changing and New Zealand’s influence is diminishing.” Mr Bolger said the Government’s defence policy was an issue raised by many people he had met, not only politicians.

New Zealand was becoming less relevant because it had moved “one step away from our traditional allies.” While this would not bring specific trade measure against New Zealand, it would affect attitudes on trade.