§ Mr. Bestasked the Minister of Agriculture, Fisheries and Food if he will estimate the effect on the cost of the European Economic Community milk regime if there were no imports of New Zealand dairy products to the European Economic Community.
§ Mr. MacGregorThe immediate cost to the Community budget of exporting a quantity of butter equivalent to imports from New Zealand, minus revenue from the levy on these imports, is about 40 mecu at current rates. But I have made clear in my reply to my hon. Friend's other question today on this subject that the wider benefits of the New Zealand arrangement cannot be quantified.
§ Mr. Bestasked the Minister of Agriculture, Fisheries and Food, pursuant to his answer to the hon. Member for Ynys Môn, Official Report, 17 May, column 226, what are the corresponding trade benefits in respect of the United Kingdom's agreement on the import of New Zealand dairy products to the European Economic Community.
§ Mr. MacGregorThe Community's arrangements for the import of New Zealand butter on special terms include agreement with New Zealand, as a major supplier to the world market, to co-operate in managing the world market for dairy products. The benefits of this co-operation are not quantifiable, but it is clear that it reduces the cost to the European Community of exporting Community surpluses.
The arrangements for the import of New Zealand cheese were established in the context of the GATT, the trade benefits of which extend across many sectors of international trade and cannot be quantified.