199 Minute from Lind to Scully and Senior Executive Officers

Canberra, 6 August 1982

Australia- New Zealand Closer Economic Relations- Countervailing Duties

The release for public comment of the proposal for closer economic relations with New Zealand1 has generated very strong reaction from Australian State Government and industry interests on the need for prompt and effective action against imports from New Zealand of dumped or subsidised products.

We have advised these interests that the agreement would ensure that the normal anti-dumping and countervailing remedies were available, as does NAFTA.

There has been widespread disappointment expressed that New Zealand is to be allowed to retain performance-based export incentives until 1987 and this has focussed attention on the availability of countervailing as distinct from anti-dumping measures.

There could be a considerable flow of requests for countervailing action against New Zealand. It is also likely that this will provoke retaliatory efforts by New Zealand. It is also likely that this will provoke retaliatory efforts by New Zealand industry to have countervailing duties applied against Australian goods entering New Zealand.

Such developments could have implications for Australia's trade with other countries and accordingly are being brought to attention.

[NAA: A1313/113, 82/2594, vi]