CANADA’S TARIFF

Ashburton Guardian, Volume 50, Issue 171, 3 May 1930, Page 5

CANADA’S TARIFF

EFFECT OF THE CHANGES.

UNITED STATES AND BRITAIN*

TROX AND STEEL IMPORTS

(United Press Association—Copyright.)

(Received ’Phis Day. U p.m.) OTTAWA, May 2

Canada’s Budget will affect approximately 00,000,000 dollars in the value of United States imports. The chief item altered is iron and steel, which will probably affect £50,000 in United States imports. The chan ts in British preference are estimated, to affect £40,000,000 in the value of imports from Britain. The main item is iron and steel. (hvino- to the removal of the tax on British-grown tea in the Budget, the juice of Empire tea was cut sov<|i cents a pound to-day. . The sales departments of two of the city’s largest department stores noted an immediate drop in orders for cofiee and an increase in the demand lor tea. The opinion expressed in creamery circles that New Zealanders are liable to clump large quantities of butter into Canada before tlie change m the tariff on October 12.

ABROGATION OF THE TREATY.

NO DECLINE EXPECTED

(Special to the “Guardian.”)

AUCKLAND, AI ay 2

Referring to the cablegram from Ottawa regarding the announcement that the New Zealand treaty will lie abrogated, on October 12, Air C. M. Croft (Canadian Trade Commissioner) said* to-day that when an agreement was made between Canada and Australia on October 1, 1925. New Zealand asked for the same benefits, and by an Orcler-in-Council the request was granted. Under the agreement the duty on New Zealand butter was one cent per lb. New Zealand also got the full benefit under the British preferential tariff. Commenting on the probable cause of the new development, Mr Croltsaid that in the past few years Canada had been exporting large quantities of fresh milk and cream to the United States. With the proposed raising ol the tariff between Canada and the United States the fear of Canadian fanners was that a surplus of butterfat, would he created in Canada, Canadian farmers therefore wanted additional protection. Mr Croft said that the pro|iosed treaty mentioned in the cable message would he designed to extend trade between Canada and New Zealand, and at the same time afford a slightly greater protection to the Canadian dairy industry. “We do not believe that the increased tariff will he sufficient to interfere seriously with Now Zealand exports of butter to Canada,” said Mr \Y. Goodfellow (managing director o Amalgamated Dairies, Ltd.). “)\ehad been "anticipating an increase in duty for some weeks, although infoima--tion from our Canadian agents was that the rise would, he from 1 cent to 3 cents.” ' Air Goodfellow said the increase would have the effect of raising Hie prices of local butter and thereby givin,T Canadian farmers a better return. There was no doubt that that. was the main object of the Canadian Government in raising the duty. “Canada does not want to shut New Zealand out of her markets; that is not the intention at all. Ihe increase has been made to satisfy the demands ol Canadian farmers. W lien I was . in Canada about 12 months ago, . noted a strong feeling in favour ol an extension of trade with the I nited Kingdom. and more particularly with the Dominions,” said Mr Goodfellow. Relative to the amount of butter goiii<r from .New Zealand to ( anada. All Goodfellow said that the figures irom An "list 1 to Ala roll 31 were 3619 tons to Vancouver and 11,722 tons to Eastern Canada. NEW TREATY NEGOTIATIONS. WELLINGTON, This Day. Although an official statement in regard to the Canadian .commercial 'treaty will not he made while confidential dealings are in progress, it is understood that New Zealand will negotiate with Canada for a direct trade treaty to take the place of the agreement that expires on October 12. It is most unlikely, lidwever. that negotiations, from New Zealand’s point oi view, will he based on the proposed duty' of lour cents per pound on nutter'in place of the present duty ot one cent.