Ashburton Guardian Magna est Veritas et Prævalebit MONDAY, MAY 13, 1935. TRADE WITH AUSTRALIA.

Ashburton Guardian, Volume 55, Issue 179, 13 May 1935, Page 4

Ashburton Guardian Magna est Veritas et Prævalebit MONDAY, MAY 13, 1935. TRADE WITH AUSTRALIA.

The mission on which the Australian Minister of Trade and Customs is to come to New Zealand shortly is in renewal of negotiations that have been in suspension for some time. An agreement covering certain commodities in the trade between New Zealand and Australia was entered into two or three years ago but the position has never been placed on a satisfactory basis. At the beginning of this year Mr Masters visited Australia with the object of furthering the interests of reciprocal trade, but his mission was without immediate practical result, though it is not too much to think that the interchange of views did much to remove misunderstandings and to prepare the way for the prompt and effective grappling with problems at the forthcoming meeting. On his return from Australia, Mr Masters put the position squarely and fairly when he said this Dominion wanted trade to make a more even balance. With conditions what they are,. Australia is likely always to sell more to New Zealand than is bought here. The Commonwealth produces practically everything from the soil that this country does, has a considerable range of tropical or semi-tropical porducts as well, and is developing manufacturing industries on an ambitious scale. Consequently there is almost bound to be predominance of exports to, over imports from, this country. There need be no special anxiety over that, for only a world gone mad would demand or expect an exact commodity balance between any, two countries. So far as Australia s balance of trade to. New Zealand is concerned there are two outstanding features. Where there has seemed to be an opportunity of doing trade from this side, action has often been taken to bar the door. . This was done some years ago by means of a prohibitive duty on butter when there seemed to be a prospect of New Zealand selling to the Commonwealth, it happened again when even more drastic action was taken to prevent the entry of potatoes during periods of temporary scarcity in Australia. Again, with the present state of the exchange, Australian trade tends to increase at the expense of British. New Zealand cannot afford to have this trend go on indefinitely. It is hopeless to expect Britain to buy more New Zealand produce if the return trade that might have been expected is diverted to Australia. These are two* outstanding reasons why New Zealand should demand better treatment, or, if driven to do so, set about getting it. Ihere is always a weapon in the hands ot the country that buys most.