EMPIRE TRADE.

Auckland Star, Volume LXVI, Issue 204, 29 August 1935, Page 16

EMPIRE TRADE.

DOMINION'S POLICY. TARIFF RELATIVELY LOW. COMMENT BY MR. COATES. Empire trade and tariffs were discussed by the Minister of Finance, Mr. Coates, in an interview before his return to Wellington yesterday. Among the points stressed by the Minister was tha.t New Zealand's tariff on United Kingdom products was abnormally low. Mr. Coatos said that there was a somewhat one-sided opinion current concerning inter-Empire trade. It was not often realised that the relations between New Zealand and the United Kingdom well illustrated international (specialisation of industry, New Zealand's tariffs being mainly for purposes of revenue. Substantial preference to the United Kingdom had always been New Zealand's policy. An examination of the tariffs of othex Dominions would illustrate how far New Zealand had extended preference to the Mother Country. Prior to the Ottawa Conference figures had been taken out to determne the relative heights of the tariffs of those countries which traded chiefly with the United Kingdom. The highest tariff had been that of the Argentine, and then had come the United States of America. Australia had been the third highest with a tariff four times that of New Zealand. Canada had been three times and South Africa Aomewhat over twice as high as New Zealand. New Zealand's tariff on British goods had been by far the lowest in the Empire, and since the latest tariff revision was probably the lowest in the world. Abnormally Low Tariff." "To indicate how abnormally low was our tariff on United Kingdom products we should consult the schedules of the Ottawa agreement." said Mr, Coates. "The. United Kingdom asked New Zealand to reduce four ppeeiflc items in favour of the United Kingdom, whereas the Canadian and Australian agreements set out extensive liflts. The British Government nt Ottawa were fully satisfied with our treatment, of their goods, hut in the recent tariff revision, where we made over a hundred alterations, thorp were only three minor increases. The rest were either reductions or total abolitions in our tariffs on British goods." The Exchange Rate. There were two points, said Mr. Conies, which should be realised. First, the United Kingdom policy of quantitative regulation had originated and had been extended before- New Zealand raised the exchange rate. Secondly. the fall in New Zealand imports from the United Kingdom and elsewhere had taken place before the raising of the exchange rate. Thereafter imports had gradually risen. These fncts showed that British policy nnd British trade had not been affected by New Zealand's action in raising thn exchange rate. The raining of tho exchange rnte did not diminish one whit New Zealand's capacity to buy goods abroad. Tn conclusion, Mr. Coates referred to n cablegram sent to the British Government in October. 1933, concerning the suggested removal . of the Dominion 'a nlready low protective tariff on United Kingdom products, and to the reply received from the British Government in the following month: "ft is quite clear that the United Kingdom is not asking for further concessions in respect to our tm-inV. nor is it likely to offer us a quid pro quo if we did take such a step," he declared.