IMPACT OF E.E.C.

Taupo Times, Volume 20, Issue 5, 21 January 1971, Page 4

IMPACT OF E.E.C.

"If Britain does enter the European Ec onomic Community, Australia will ride the hump with less difficulty than New Zealand, but the impact on both countries' trade will be considerable," states A.N.Z. Bank in an article entitled "Britain in the E.C.C. — Implication for Australia and New Zealand" in the January issue of its Quarterly Survey. "The main impact of Britain's membership of an enlarged E.E.C. would be felt by the rural sectors in both Australia and New Zealand. 'Britain's entry into the Community would hit New Zealand's rural sector harder than Australia's. "And the industry which would be most affected is dairy products. In 1969-70, dairy products accounted for 17.3 per cent of New Zealand's total exports and about 73.2 per cent of these were purchased by Britain. Exclude "In the absence of special arrangements, Britain, upon entering the E.E.C. would be faced with a price and levy system for dairy products which would virtually exclude ' New Zealand imports in favour of a supply of dairy products from the present community. "The cost to Britain, should this be the case, would be not inconsiderable for, as the New Zealand Monetary and Economic Council has estimated, it would cost the United Kingdom an extra 125 million pounds a year to purchase, at current E.E.C. prices, the amount of butter currently purchased from New Zealand. By 1973 "If the negotiations are successful, it appears likely that Britain" A.N.Z. Bank concludes "would commence entry to the European Economic Community by 1973 The acceptance of this position is something which has to be faced by Australia and New Zealand. "If the going gets tough as

the negotiations proceed, it seems likely that Britain will not let Australian and New Zealand problems act as barriers to her entry , and that Britain, as a consequence, could expect drastically reduced preferences in the Australian and New Zealand markets for her exports to those countries".