TRADE PACT.

Auckland Star, Volume LXVIII, Issue 233, 1 October 1937, Page 9

TRADE PACT.

N.Z. AND CANADA.

TREATY AGAIN EXTENDED.

CONCESSIONS FOR DOMINIONS

(By Telegrapti.—Parliamentary Reporter.) WELLINGTON, Thursdav.

"The new arrangements can be regarded as most satisfactory," said the Minister of Finance, the Hon. W. Nash, to-night in commenting on the fact that the trade agreement between New Zealand and Canada had been extended for a further year, until September 30, 1938. Various concessions for Dominion exports to Canada are included under the extended agreement.

The agreement was lirst entered into in 1932, and the original term was for one year. This period has since been extended from time to time, the last extension having been made in October of last year. The agreement was due ti expire to-day, and notice of the extension is given in the Gazette published to-night. The extension has been arranged pending the conclusion of a new agreement between the two countries. During liis recent visit to Canada the question of the trade between the Dominions was closely discussed by Mr. Nash with the Hon. W. D. Euler, Canadian Minister of Trade and Commerce, hut insufficient time was available in which to arrange a new agreement. It is proposed, however, that negotiations should be undertaken prior to the expiry of the term now arranged. The figures of trade between the two countries reveal an increasing discrepancy in trade in favour of Canada, the position over the last five years being as follows: — Exports to Canada: 1932, £229,000; 1933, £542,000; 1934, £693,000; 1935, £053,000; 1936, £1,098,000. , Imports from Cans.da: 1932. £1,108,000; '1933. £1,265,000; 1954, £2,098,000; 1935, £2,450,000; 1936, £3,326,000. ' Balance in favour of Canada: 1932, £879,000; 1933, £723,000; 1934, £1,405.000; 1935, £1,797,000; 1936, £2,208,000. Goods Exchanged. New Zealand's export trade to Canada consists mostly of wool, hides, calf and sheepskins, and sausage casings. A small trade is also enjoyed in butter and apples. Imports from Canada comprise a wide range of goods, a considerable portion of which is made up of materials for use in New Zealand industry. The principal items of import, however, are motor vehicles, rubber tyres and newsprint, these three items accounting for approximately half the value of imports in 1936.

The negotiations carried out by Mr. Nash were directed toward obtaining from Canada concessions which it was calculated would open up possible markets in that Dominion for New Zea land products, and as a result the Canadian Government has agreed to provide immediately for the following reductions in duty in respect of New Zealand goods: — Mutton and lamb: Present duty, 3c per lb; new rate, ic per lb. Kidneys and tongues: Present duty, maximum 3c per lb; new rate, free. Hops: Present duty, ttc per lb; new rate, free. Canned whitebait: Present duty, lo per cent ad val., maximum "Jc per lb; new rate, free. Edible gelatine: Present duty, 10 per cent ad val.; new rate, 5 per cent ad val. Infants' Foods. Karitane products, including Karilac, Kariol, Karil and similar infants' foods, are also to be admitted into Canada free of duty if this is expected to be of marked benefit to the Plunket Society and to similar organisations in Canada.

"It is felt that the concession in respect of lamb in particular offers distinct possibilities for the expansion of trade which hitherto has been very email," said Mr. Nash. "Canada imports considerable quantities of canned meats (dutiable at 35 per cent ad val.) from South American countries and also hops (dutiable at 14 cents per lb) from foreign countries. The preference which will be enjoyed by New Zealand should make it possible to capture some of this trade. "The question of securing more favourable conditions which would permit of the entry of New Zealand butter into Canada has been the subject of much discussion and negotiations are still proceeding. A few years ago New Zealand exported considerable quantities of butter to Canada, but the exchange dumping duty of approximately 4 cents per lb since applied, combined with the ordinary duty of 5 cents per lb, has been effective in reducing the trade to very small dimensions. Position Difficult. "It is recognised that the position is difficult, having regard to the fact that Canada is now, except in unfavourable seasons, producing her requirements of butter and is. in fact, an exporter to the United Kingdom market. It is understood. however, that owing to drought conditions which prevailed during th<i past summer production has been much below normal, and it is hoped therefore that a satisfactory arrangement can be made under which this Dominion will bj in a position to make shipments to Canada during the coming winter into that country."

Another matter taken up by Mr. Nash was the possibility o£ expanding the trade with Canada in respect of hides. These are admitted free of duty and a fair trade has existed for some years. The question of increasing their purchases of New Zealand hides has been taken up with Canadian tanners, and it is hoped that as a result it will be possible to increase this trade.

The question of providing for protection for New Zealand industries which come into competition with Canadian pood* has not been overlooked and adequate power exists to provide such protection as may be found necessary.