No progress on N.A.F.T.A. talks

Press, 12 April 1979, Page 4

No progress on N.A.F.T.A. talks

PA Wellington New Zealand and Australian businessmen will have to play a greater role in making the New ZealandAustralia Free Trade Agreement more effective in boosting trade between the two countries, according to statements made at the end of the N.A.F.T.A. talks yesterday.

The statements were made by the Deputy Prime Minister (Mr Taiboys) and the Australian Deputy Prime Minister (Mr Doug Anthony) in Wellington where the annual talks were held. Mr Taiboys, discounting any suggestion that NA'F.T.A. had outlived its usefulness, said there was an acknowledgement of its limitations, but a recognition of the increasing role which business itself had to play in developing Tasman trade. Mr Anthony said: "We are looking to these ousinessmen to start to be really nationalistic in their attitudes, not just looking after their own selfish interests but realising that it is the totality of the trade relationship and the economic relationship between our two countries which is going to be important. “I say this,” said Mr Anthony, "because there are so many other groupings around the world that are finding it to their advantage to get closer together, and we sit down here in the Pacific — two countries more alike than you will find anywhere else in the world — and yet we have sort of reached a plateau in our trade relations which is presenting problems to us. *‘We recognise this, but I am afraid we do not know how to get over it at the moment,” said Mr Anthony. A communique issued after the meeting said the New Zealand and Australian Ministers agreed on the "real worth” of N.A.F.T.A.

in promoting trade between the two countries.

But they also agreed that the institutional framework of N.A.F.T.A. “in today’s circumstances” was limited. “We look to the newlyfonned Australian New Zealand Businessmen’s Council and others to probe and study how commercial activity between our two countries can be further extended,” the Ministers said. Tasman trade in 1977-78 totalled $1039M and was SSBBM for the first six months of 1978-79. Mr Taiboys, answering questions at a news conference, agreed that there had been no breakthrough and no advance at the two-day talks. “I think that is a fair statement,” he said. But he said discussions still had to be completed on a number of matters. These included sales of whitegoods and peas and beans. The communique said the Ministers noted that the New Zealand and Australian carpet industries had made a joint submission to the Australian Industries Assistance Commission on the Tasman carpet trade, and that its report w not expected for some time. In the meantime, officials were to discuss with the industry the question of increasing trade in wool-rich carpet. On cheese, the communique said the Ministers noted

that the Industries Assistance Commission had made a detailed inquiry into the Australian cheese industry, and its report was being considered by the Australian Government. “New Zealand Ministers emphasised the significance placed on the maintenance of access opportunities into the Australian market for agricultural products, including cheese,” it said. “Australian Ministers assured that New Zealand’s views would be taken into account in the formulation of Australian policy in this area.”

Mr Anthony said the Australian dairy industry was ocncerned about the amount of cheddar and cheddar-type cheese being imported. Answering questions, Mr Anthony said there was the political will in Australia to make N.A.F.T.A. succeed and increase trade. “But there has to be reciprocity of opportunity,” he said. “That is what we get tied down to. That argument, I suppose, can go both ways.” But he said that of the 400 or so items in schedule A of the N.A.F.T.A. agreement — on which no duties are payable — a very high proportion were subject to some sort of import licensing. “While you have problems with your balance of payments and limitations to open trade, you do not have that automa'tic reciprocity,” Mr Anthony said.