Trade with Great Britain

Press, Volume LXX, Issue 21085, 9 February 1934, Page 8

Trade with Great Britain

In a letter to "The Press" this morning Mr W. Machin returns to the question of reciprocal trade between Great Britain and New Zealand and complains that our leadiijg articles on the subject have not lieen "helpful." It seems possible ;hat Mr Machin has mistaken the purpose and the point of those articles and that he is more in agreement with us than he imagines. We have criticised Mr Goodfellow, and others who speak for the farming interests, for assuming that the British quota system, devised for the protection of the British farming industry, was a consequence of the tariff policies of the Dominions and that New Zealand could buy exemption from the system by importing more British goods. We are, however, as anxious as Mr Machin is for closer economic ties between Great Britain and New Zealand and for an increase in the volume of New Zealand's imports from Great Britain. Within the quota system, no doubt, New Zealand's treatment will depend in part on her treatment of the British exporter. But it must be realised that what New Zealand can do in this direction is limited and cannot constitute a very powerful bargaining weapon. In 1932 about 50 per cent, of her imports came from Great Britain, 22 per cent, from other British countries, and 23 per cent, from foreign countries. Most of the imports from " other British countries" came from Australia and Canada, with j whom New Zealand has trade ! treaties. When allowance is made for imports which could not be obtained from Great Britain, it will be seen that New Zealand's capacity to buy more from Great Britain by a recanalisation of her trade is limited. In any case, the British representatives at Ottawa made it clear that they desired, not so much increased preference over foreign goods as a better chance to compete with New Zealand industries. At Ottawa the New Zealand Government undertook:—

To reduce duties as soon as possible to a level which will place the United Kingdom in the position of a domestic competitor with lull opportunity of reasonable competition on the basis of a relative cost ot economical and efficient production. More than this was not asked and could not have been conceded.