THE MEAT AGREEMENT

Otago Daily Times, Issue 21775, 14 October 1932, Page 7

THE MEAT AGREEMENT

REDUCTION OF FOREIGN IMPORTS AUTOMATIC BENEFIT TO DOMINIONS In regard to meat, our agreement proceeds along new lines. The purpose of the agreed policy is not different from that sought in other products; it is to secure for the dominions and the Home producer an increased and assured share in the United Kingdom market, at remunerative prices. But the method of approach is different in the case of meat; and as it has been the subject of some misunderstanding I shall refer to it in some detail.

The outstanding fact to note in connection with the United Kingdom meat market is the vast and abnormal increase in supplies. With the closing or curtail-; ment of important' European markets, supplies which they normally absorb have been diverted to the _ United Kingdom, and even at the low prices that have prevailed it has been impossible to absorb the greatly increased* volume of supplies. New Zealand sought, as a long-term measure, a preferential position in the United Kingdom market, to be secured by means of a tariff on foreign supplies, with free entry for the products of the dominions. To supplement this, as an cmerg. ency'measurc, we suggested the imposition

of a quota against foreign supplies. At the present time,, the meat imports of the United Kingdom have the following origin: Foreign 76 per cent. Empire 24 per cent. Our contention was that there was ample scope for increasing _ the dominions’ share, and this was not disputed. Moreover, the New Zealand proposals were accepted as the basis of the agreed requests advanced on behalf of all dominions to the United Kingdom. His Majesty’s Government in the United Kingdom was unable to accede to the request for a tariff on foreign meat. The statement, widely published in New Zealand, that it was prepared to impose such a tariff, and that it was rejected by us is contrary to fact. At no time were the , United Kingdom representatives at Ottawa prepared to contemplate a tariff on meat. While unable to impose a tariff on foreign meat, the Government of the United Kingdom was prepared, and, indeed, in the interests of its own producers it was determined, to apply a scheme for the regulation of imports. The objective of the scheme as expressed in our agreement is a twofold one: to raise the price of meat to a remunerative level, and progressively to increase the share of the home producer and the dominions in the United Kingdom market. So far as pig products are concerned — in which New* Zealand is interested as a potential exporter and by reason of the bearing of these products on the meat market generally—finality has not been reached. At the moment the whole situation is being surveyed by a commission specially set up for the purpose in the United Kingdom. But we are assured that a substantial reduction will be made in imports of foreign bacon supplies, and that the Dominion will acquire an increasing share in the United Kingdom market. Mutton and lamb are the meat products in which New Zealand is most directly interested at the moment; and recent increases in the supply on the United Kingdom market have exceeded the capacity of the market to absorb them. The competitors of the British dominions are mainly the South American republics. Their mutton and lamb exports to the United Kingdom, while substantial in volume, do not constitute a large proportion of their total meat # exports; they are interested mainly in chilled beef, and in this line our southern dominions are unable to compete. By the agreement made at Ottawa, his Majesty’s Government in the United Kingdom agrees to reduce the imports of foreign mutton and lamb by the following percentages, as compared a ith the total for the 12 months ended June 30, 1932:

Quarter ending March 31, 1933, by 10 per cent. June 30, 1933, by 15 per cent. September 30, 1933, by 20 per cent. December 31, 1933, by 25 per cent. March 31, 1934, by 30 per cent. June 30, 1934, by 35 per cent. And thereafter at not less than 35 per cent, for the period of the Ottawa agreement, i.e,, for five years in all. Foreign frozen beef is to be subject to the same percentage reductions as those just mentioned. Chilled beef imports from foreign sources are to be regulated so that no increase beyond the quantity for the year ended June 30, 1932, will be permitted. An alternative method of expressing the agreement in relation to the imports of foreign meat is given as follows: — Statement showing the maximum quantities of foreign meat to be allowed to be imported into the United Kingdom during each quarter of the period January 1, 1933, to June 30,. 1934, expressed as percentages of the quantities imported in the corresponding quarters of the 12 months ended June 30, 1932: — 1933. Jan.- April-July- Oct.March. June. Sept. Dec. per per per per cent. cent. cent. cent. Frozen,, mutton and lamb .. 90 85 80 75 Frozen beef (carcasses and boned beef) .. 90 85 80 75 Chilled beef .. 100 100 100 100 1934. Jan.- AprilMarch. June. per per, • cent. cent. Frozen mutton and lamb .. 70 65 Frozen beef (carcasses and boned beef) 70 65 Chilled beef 100 100 No reduction is to be imposed on any exports from New Zealand. We have, however, agreed to give early in each export season a reliable estimate of exports, by weight, of mutton ‘and lamb. In consultation with the • representatives of the New Zealand Meat Producers’ Board, we have given an estimate for the season which is just commencing. The purpose is to assist in orderly marketing of supplies in the United Kingdom. It is manifestly fair as between one dominion and another that substantially similar conditons should apply to all, and .the Ottawa agreements satisfy this requirement. We are not to exceed the estimate given. It is impossible for anybody mathematically to calculate the precise effect on prices which will result from .regulation of supplies. But it can be assumed that such regulation will tend to raise prices to a remunerative level. The United Kingdom Government is able, in accordance with the agreement, to safeguard the. interests of consumers; and the plan adopted will, it is believed, be beneficial to producers without detriment to consumers.