N.Z. BUTTER DMT.

Auckland Star, Volume LXI, Issue 102, 2 May 1930, Page 7

N.Z. BUTTER DMT.

CANADIAN IMPOST. Four Cents Per Pound From October 12. NEW TREATY SOUGHT. (United P.A.-Electrlc Telegraph-Copyright) (Received 11 a.m.) OTTAWA, May 1. The Budget announces that the Xew Zealand Treaty will be abrogated on October 12. A duty of four cents in the pound on. New Zealand butter becomes effective at that date, when the present agreement will become inoperative. After October 12 Canada will extend full British preference to New Zealand. Mr. Dunning, Minister of Finance, said the Government of Canada has proposed to the Government of New Zealand that a direct trade agreement be negotiated to supersede the present arrangement. "We hope to be able to arrange for a meeting of representatives of both countries in the near future/ , he said, "in order to endeavour to reach a mutually satisfactory arrangement."

CAUSE OF CHANGE. U.S. Tariff Wall Raised Against Canada. SURPLUS ANTICIPATED. <: At present there is no direct agreement between New Zealand and Canada," said the Canadian Trade Comjnissioner (Mr. C. M. Croft) this morning. He said that when an agreement was made between Canada and Australia on October 1, 1925, New Zealand asked for benefits, and by an Order-in• Council it was granted. Under the agreement the duty on New Zealand butter was one ; cent per lb. New Zealand also got full benefit under the British preferential tariff. Commenting on the probable cause of the new development, Mr. Croft said 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 of the tariff between Canada and the United States the fear of the Canadian farmers was that a surplus of butterfat would be created in Canada. Canadian farmers therefore wanted additional protection. Mr, Croft said that the proposed treaty mentioned in the cable would be designed to extend trade between Canada and New Zealand, and at the same time afford slightly greater protection to the Canadian dairy industry.