EXPLORE TO THE FULL

Auckland Star, Volume LXV, Issue 162, 11 July 1934, Page 9

EXPLORE TO THE FULL

WHILE GUARDING HOME INDUSTRIES. NEGOTIATIONS IN PROGRESS. "This brings me to one of the most important matters with which I propose to deal—the encouragement of trade within the Empire," declared Mr. Coatcs in speaking on this aspect of his tariff proposals. Continuing, he said: — "It is the settled policy of the Government to pursue every practiablo avenue to increase trade between New Zealand and the other units of the Empire, especially the United Kingdom. During the last 30 years this Dominion lias accorded substantial tariff preference to the goods of Empire countries. For a lonjr period this preference was on a voluntary basis so far as Xcw Zealand was concerned, and was extended to all units of the Empire. Now, however, the practice is for preference to be arranged by means of definite trade agreements between the respective units of the Empire. In 1922 Xcw Zealand made a trade treaty with Australia, which was replaced last year by a new agreement. In 1!):52 an agreement was made with Canada, which provides for tariff concessions by both countries. In the same year, as members are aware, an agreement was entered into at Ottawa under which, for the first time, a definite tariff arrangement was made witli the United Kingdom, some of the provisions of which extend to the non-self-governing colonies and protectorates. There is also a reciprocal agreement between this Dominion and the Union of South Africa. "In the light of the existing circumstances it would appear that this Dominion's policy should continue to be moulded along these linos. Trade Preference Limits! "There are, of course, limits to the extent to which' Empire trade can be fostered by means of tariff preferences. The interests of our own people, especially those of the primary and secondary industries, must be considered. At the present time Xcw Zealand extends such preferences on a very wide range of goods. Generally speaking, and except for certain important revenue items, it may be said that where preference is not granted the goods concerned are of a cltss not commercially produced within the United Kingdom, or are essential raw materials required by the industries of Xcw Zealand, which it is' desirable should be available at the lowest possible cost. It is obvious that in many cases, if duties were imposed on such materials, or if the duty thereon were increased, it might be necessary to grant the local industries increased protection to enable them to J compete with imported finished articles.

"There is another side—and a very important one—to these agreements, viz., the extension of markets for our products in Empire countries. The advantages we received under the Ottawa agreement are too well known to require recapitulation, and I do not at present propose to go into details. The agreements with Canada and Australia have on the whole proved satisfactory, and they have provided means for the disposal of onr products in those countries. Reciprocal Agreements. "There is one point in connection with the Australian agreement to which attention should be directed. Many witnesses who appeared before the Tariff Commission pointed out that, with respect to certain goods exported from New Zealand to Australia and not specifically mentioned in the agreement, higher rates of duty were charged than those on similar goods imported from Australia into New Zealand. Provision is, however, made in article 9 of the agreement under which either country can request the other to admit any lines of goods at the rate applicable in the country of export. If the request is not complied with within three months, the country making the request can impose on the goods of the other country a rate of duty not greater than that charged in such country under its British preferential tariff. "It is the intention of the Government to take advantage of every opportunity of extending the policy outlined above by making trade agreements with other self-governing Dominions. Certain preliminary negotiations have already taken place, but it is not possible at present to give details of these. . |