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New Zealand-Australia Free Trade Agreement Ministerial Meeting, Canberra

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5th March 1970

The New Zealand and Australian Trade Ministers,

the Rt. Hon. J.R. Marshall, Deputy Prime Minister of New

Zealand and the Rt. Hon. John McEwen, Deputy Prime Minister of Australia met in Canberra today for the fourth annual

review of the operation of the New Zealand-Australia Free Trade Agreement.

The Ministers noted with satisfaction the development of trade between the two countries in relation to the goods covered by the Agreement (Schedule A), and Article 3:7 -the special reciprocal trading measures. To date, 115

Article 3:7 proposals have been approved to a total trade value of $11.5M, There were sound.reasons for confidence in the future growth of this trade.

Agreement was reached on new measures to extend the list of goods in Schedule A including the use of tariff quotas to ensure that the domestic industries of each

country were not subject to serious damage,

To increase the trade under the proyisions of

Article 3:7 to the benefit of both countries, New Zealand agreed to extend the scope of the existing concessions to

include reciprocal tariff concessions in appropriate cases.

Australia-has already provided this concession for approved proposals.



To encourage the rationalisation of industrial production between Australia and New Zealand special 3:7

arrangements may be approved for more than one year,

Mr. McEwen expressed his satisfaction that New

Zealand had in respect of arrangements approved after 1st January 1970 increased the concessions it was

prepared to provide for Australian exporters by increasing

the special import licensing entitlement from 80% to 90% of the New Zealand content of the goods imported into Australia,

Proposals designed to foster rationalisation of the two countries' motor vehicle industries and to

encourage an expansion in mutual trade in motor vehicles, components and accessories were also discussed by the Ministers,

Ministers agreed that reciprocal trade proposals approved in future in this sector of industry would be eligible for the following new concessions -reciprocal trade would be on a duty-free basis,

including waiver of the 641% duty applying to c.k.d. packs from Australia

motor vehicle components traded under these

arrangements would be accepted as "local content'' for the purpose of motor vehicle plans in both countries.

Mr. Marshall and Mr. IvlcEven considered it important that motor vehicles, components and accessories traded

between the two countries under the revised scheme should have appropriately high local contents,




It was agreed that a number of specific proposals L aimed at encouraging further industry rationalisation in the motor vehicle field would be examined, Mm, Marshall agreed to consider the possibility of Australian exporters under these rationalisation arrangements oh : airing greater

reciprocal licence entitlements than currently a_) ply. This

examination would take account of the likely cost aud price

benefits to New Zealand of the rationalisation proposals

and of the greater export opportunities they offered -including the substantial development of exports to third


At their meeting, the Ministers considered a

report from the Joint Consultative Council on 'sorest Industries which had been set up to promote the most efficient use of the forest resources of both countries.

It was agreed to publish this report in both countries to assist the respective industries in their investment planning, The Council will now undertake further studies on matters of interest to both countries,

Because of the importance of -forest products in

the Free Trade Agreement, Ministers reviewed the present and future trade in pulp, newsprint, packaging materials and tissues in the light of their 1968 discussions. They noted

progress to date and expressed their confidence that this trade would expand and result in rationalisation of

future production which would lead to an increase in two way trade and in exports to other countries.


Apart from the trade between the two countries

the Ministers expressed their common concern with problems in international trade particularly those affecting exports of primary products.

Problems associated with Australia's and New Zealand's export of butter, cheese and meat to the United Kingdom and meat to the United States were also discussed.

In this area of international trade the Ministers welcomed the very close co-operation which existed between

the two countries and were confident that this co-operation and understanding would grow in the interests of the future economic development of both Australia and New Zealand.

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