Ashburton Guardian Magna est Veritas et Prævalebit TUESDAY, DECEMBER 4, 1934. TASMAN TRADE.

Ashburton Guardian, Volume 55, Issue 46, 4 December 1934, Page 4

Ashburton Guardian Magna est Veritas et Prævalebit TUESDAY, DECEMBER 4, 1934. TASMAN TRADE.

It has been disclosed that during the conference at Canberra regarding trade between the Commonwealth and the Dominion an attempt was made to end the deadlock, by proposing the introduction of a quota system. The New Zealand delegation sought a minimum export quota of 10,000 tons of potatoes annually, which the Commonwealth Ministers, yielding to the pressure of their Victorian and Tasmanian colleagues, rejected. Similarly, fruit interests resisted any move to allow New Zealand apples and pears into Australia owing to the parlous plight of Australian growers. The' proposal on the part of the visiting delegation showed that while they realised they had no need to seek for favours they were ready to make concessions in order to put trade across the Tasman on a satisfactory footing. The breakdown of the negotiations may be expected to bring about some curtailment of trade with Australia, a position that will be the disadvantage of the Commonwealth. In the early days of this century, when manufacturing in Australia was not so extensive as it is to-day, the main trade each way was in primary products or in products but little removed from the primary stage. The general export trade of both countries was then, as it is to*day, principally of primary produce, but now more manufactures from Australia have entered into the exchange of products than have entered from the New Zealand side. A trade treaty embodied in legislation enacted toward the close of 1933 was largely reciprocal in character, and its effect was to make easier the entry of Australian manufactures into the New Zealand market. Australian exports more to the Dominion than we export to her. In the last year for which returns arc available, the period ended June 30, 1933, exports from Australia to New Zealand were of the value of £2,770,000, and imports from the Dominion amounted in value to £1,103,000. That relatively Australia has gained ground during the past five years is borne out by the fact that Commonwealth exports to New Zealand have not fallen to anything ike the extent that the imports from New Zealand have fallen. The . all in the latter case'from 1929 to 1933 is fifty per cent., while in the case of Australian exports across the lasman the fall is 34 per cent. There is no doubt that Australia has been helped in keeping up her exports by her currency, depreciated in terms ot British currency. The advantage was continued when the New Zealand currency depreciated to the same degree as Australian currency. The effects are seen in the increase in exports ot apparel, footwear, and some structural metal to New Zealand. That the trade should balance is not to be expected, but there is a decided need for a more equitable basis in respect to several commodities of importance—from the viewpoints of the respective producers and from those of the respective consumers alike.