TRADE RELATIONS

Press, Volume LXVI, Issue 19929, 16 May 1930, Page 10

TRADE RELATIONS

CANADA AND DOMINION.

NEW AGREEMENT TO BE SOUGHT. (FBESS *BSOCUTIOH TILEQEAM.) AUCKLAND, May 15. ' The intimation contained in the recent Budget proposals of the Canadian Government that it is intended to terminate as from October 12th next the concession Which has been extended since 1925 to New Zealand butter imported into Canada, formed the subject of a statement by the Prime Minister (Sir Joseph Ward) at Eotorua to-day. ."Our butter has been enjoying the benefits of the trade agreement be- | twoen Australia and Canada, and has been subject to a duty of 1 cent per pound on importation into ' Canada," said Sir.Joseph. "The New Zealand Government has now been informed by the Canadian Government that this concession is to terminate on October 12th, and that thereafter the rate will be increased to three cents per pound, which is the rate of duty under the British preferential tariff on butter imported into Canada. The Cana- ■ dian Government has also proposed that a discussion regarding trade relations between our two countries should be entered into as soon as may be convenient with a view to negotiating a direct trade _ agreement. The Canadian Government has also suggested that such discussions might take place at Ottawa or in -London,, the latter on the occasion of the meeting Of the economic conference later in the year. Having regard to the fact that the value of New Zealand butter imported into Canada last year was no less than £2,700,000, it will easily be seen that the proposed increase in the Canadian duty is a serious matter to New Zealand producers. "In replying* to the Canadian Government we have indicated that New Zealand will be happy to enter into diseussions on trade relations between the two Dominions with a view to negotiating a direct trade agreement, but that we regret the decision of the Canadian Government to discontinue the present concession rate on New Zealand butter after October 12th, We have pointed out that in 1929, the export of butter from New Zealand to Canada conslituted 80 per cent of our total export trade to the sister Dominion, and that we cannot view with equanimity the proposed increase of duty. Moreover, the concessions granted by New Zealand to Canada during 1929 amounted in" value approximately to £1,000,000, while the concessions granted by Canada to New Zealand were approximately £300,000. We have suggested that the Canadian Government agrees to enter into early conversations either at Ottawa or Wellington so that any direct trade agreement may be implemented by, legislation during the next session of ' we New • Zealand Parliament or, in the alternative, that the Canadian Government extend the present concessions until such agreement ean be implemented by legislation at the. time of the Economic Conference in London. "Should the Canadian Government find it impracticable to adopt either of these suggestions we have , expressed the view that publie opinion New Zealand might render difficult'consideration of further concessions to Canadian products and might prejudice the existing favourable treatment granted by New Zealand to certain Canadian products. A further expression of the views of the Canadian Government has been requested as soon as possible."