$500M lamb deal ‘best N.Z. has had’

Press, 27 July 1989, Page 1

$500M lamb deal ‘best N.Z. has had’

PA . Wellington The European Community’s Farm Ministers have approved the $5OO million lamb part of their proposed deal with New Zealand, paving the way for a $6O million rebate for farmers, the Minister of External Relations and Trade, Mr Moore, said yesterday. The total package was “the best that this country has ever had,” because it gave New Zealand an unprecedented four-year renewal of European access, said Mr Moore. "That time is absolutely critical to us because we have the General Agreement on Tariffs and Trade negotiations and we see a way of advancing the Kiwi interest through them.” The 12 Ministers, meeting in Brussels this week, had agreed in principle to a 40,000-torine reduction, to 205,000 tonnes, of New Zealand’s lamb exports to Europe, in return for an end to the 10 per cent tariff, he said.. This deal, with effect from January 1 this year, was subject to the European Commission’s settling quantities with other suppliers but New Zealand was the

main player, he said. “We are the Toyota, we are the Honda of this place ... so that shouldn’t be a major problem,” he said.

Other lamb exporters could cause problems for New Zealand but would not be able to “kill” the deal, Mr Moore said.

The Ministers wanted further scrutiny of lamb price surveillance mechanisms, which would pose no difficulties for New Zealand. *

“We’re prepared to talk to them about that. We will look at things. But II don’t see that as being an insurmountable problem. That’s up to us to agree. We have the cards on that.”

Final agreement was expected in September ,on the proposal, which also limited chilled lamb quantities, and retained France and Ireland's sensitive market status.

“If this continues, what it means is back-payment compensation of about $6O million.” Mr Moore said he was surprised that the Ministers had agreed on the lamb component of the deal first, as he had expected

them to settle butter first. They had renewed last year’s 74,500-tonne British butter quota, which expired on December 31, until the end of September because they failed to reach unanimous agreement on the new figures, he said. Ireland is thought to have held out against the proposed New Zealand butter quantities. Under the butter and lamb package Mr Moore hammered out last October with then European Agriculture Commissioner, Mr Frans Andriessen, the quota will drop gradually over the next four years. The Ministers have insisted on resolving their own sheepmeat reforms before tackling the New Zealand proposal. “We have always been a hostage to the internal sheepmeat regime and we can only move as fast as they’ve been able to move. I would have thought that butter was easier for them.” Mr Moore paid tribute to the French, in the chair for the first time as European Community president until the end of the year, for a speedy decision.