G.A.T.T. ‘threat to marketing’

Press, 23 October 1989, Page 2

G.A.T.T. ‘threat to marketing’

Wellington reporter New Zealand’s producer boards are threatened by European Community proposals to bring such organisations under the terms of the General Agreement on Trade and Tariffs (G.A.T.T.), according to the Opposition’s associate spokesman on agriculture, Mr Denis Marshall.

Citing an article in the “Agra Europe” magazine, Mr Marshall said New Zealand should protest

strongly if such a proposal went ahead. “The E.C. wants the activities of marketing boards, and State trade agencies, and other similar bodies to be made subject to the rules of G.A.T.T.,” the report said. “At present, the Community claims, the special marketing and distribution provisions operated by these boards often act as hidden barriers to trade.” Mr Marshall said the E.C. should

deal with its own market distortions first. “Their surpluses have destroyed the economies of many Third World countries and have also severely disadvantaged nations dependent on agricultural exports, such as New Zealand.” New Zealand’s marketing strength had gone a long way towards overcoming the penalties imposed by Europe, said Mr Marshall.