212 Cablegram from Department of Trade and Resources to Australian C.E.R. Delegation, Wellington

Canberra, 11 October 1982

O.CH66229 CONFIDENTIAL

CER: JWP Discussions

For Trade/from Trade

Attention: CER Delegation

Mr Anthony has considered the issues outlined in O.WL139421 and has given the following directions:

  1. In respect of the key issues of import licensing and export incentives the Minister has directed the following proposals be put to New Zealand.
    1. Import Licensing
      1. The present minimum access offer of dollars NZ200,000 or five per cent of the market whichever is the lower be increased to a minimum access figure of dollars NZ400,000 [or 10 per cent of the domestic market whichever is the lower]2 with and annual growth rate of ten per cent per annum in real terms.
      2. For those item codes where the base access level is above dollars NZ400,000 but less than dollars NZ1 million the annual growth rate be 20 per cent per annum in real terms until such time as it reaches dollars NZ1 million and ten per cent thereafter.
    2. Export Incentives (underline)

      As outlined in your paras 6 and 7 you should reiterate to New Zealand officials that there is no doubt on Australia's side that phasing was an essential element of New Zealand's offer and that Ministers see a need for a significant front end phasing out as a minimum.

      Mr Anthony has requested that this be conveyed as his position and that he considers that this question of incentives is one that should be left for resolution between he and Mr Muldoon rather than be canvassed by officials.

      In the light of the review of export incentives currently being undertaken by New Zealand, Australia also seeks a firm commitment that its very serious concerns about the continuation of New Zealand's export incentives in trans-Tasman trade be a major consideration in the New Zealand Government's determination of its future policy in this area.

    3. Other Issues (underline)

      Although export incentives and import licensing are the major issues Mr Anthony has also directed that the other issues identified in the monitoring group report such as specific product issues government purchasing, intermediate goods and transitional safeguards be vigorously pursued.

[NAA: A1838, 37011/19118, xxxiii]