FINDING NEW MARKETS

Press, Volume LXX, Issue 21255, 29 August 1934, Page 16

FINDING NEW MARKETS

■—« NECESSITY MAY FACE DOMINION DIFFICULTIES IN THE WAY [THE PBEBS Special Service.} WELLINGTON, August 28. The suggestion that if New Zealand fails to reach a satisfactory solution of , its difficulties with Great Britain over j the quota system it should endeavour ! to open markets for meat and other products outside Great Britain was discussed by Mr H. D. Acland, president of the New Zealand Sheep Owners' and Farmers' Federation, at the annual meeting this evening. Mr i Acland said that there were difficulties in the way of this of a trading, political, and social kind, as well as a possible loss of stability in these markets | as compared with the present market in Great Britain. I "You are no doubt well aware that our Prime Minister and his colleagues interviewed Mr Roosevelt with this 1 object in view on their way back to New Zealand from the Economic Conference, at which time the United States law prohibited the making of trading agreements with foreign countries for the importation of foodstuffs into America. Since their visit, legislation has been passed in the United States authorising the President to enter into such agreements." said Mr Acland. "Until the British Government has definitely decided to what extent it intends to restrict imports of our produce, we are not in a position to know how much margin we may expect to have for export to other countries, and in addition until our tariff schedule has been ratified by Parliament, no basis for discussion from a tariff point of view will be available. Possibilities in America "I hope that our federation will urge upon our Government the necessity, following the ratification by Parliament on the new tariff schedule, for giving serious consideration to the advisability of immediately sending representatives to the United States, with a view to arranging, if possible, for reciprocal trade relations to be established between the Dominion and the United States. "There will, of course, be many difculties to be overcome, should an attempt be made as suggested. For instance, in .1927-28, when the Meat Board sent its shipments of beef and lamb into the United States, there was such an outcry among fanners there that the Government was forced to bring in restrictive legislation to comply with the insistent demands of the farmers' representatives in congress, for protection against the importation of foreign-produced footstuffs. and I remember at that time, with what trepidation the position was viewed by the large American meat companies, Armours', Swifts', and others, and how! necessary they thought it to be to keep themselves and their businesses in the background, in view of the clamour throughout the country against meat trust methods and the importa-l tion of foodstuffs produced at comparatively low cdSts in foreign countries. The Balance of Trade "The balance of trade between the Dominion and the United States, has v ] •> been heavily against the Dominic :. During the last three years, taking the first six months of each year, the exnorts to the- United States from New Zealand have been, in New Zealand currency:— 1932 .. .. 307~241 1033 .. .. 368.112 1934 .. .. 632 988 "The Jast. figure, you will notice nearly that of ih n previou'year, owmp. of course, to the incrca*" in wool price* as compared with th" pr^v ; nus two years. "The imports from the United States in+o the Dominion, during the period? I have mentioned, were (valued in sterling):— 1932 ~ .. 1,6(14.904 1933 .. .. 1 207 fi'io 1934 .. .. 1,289.08? "If we take the first six months of this year, with wool at practically double th° price of the previous years, ; we have the bianco of trad-- between ! Ncv : to the of *8?0.1?4 (N~w Z"i- ---| ler.' 1 crrcicv) thyear were (New Zealand 1 currency), whi!<> our un'-.ey;-.; f ronl Britain were va'ued at £5,431089. in sterlmg. or in New Zealand currency £6,855,861, a balance of trade in our favour of £18,071,701. A Difficult Problem "I merely mention this as an indication of the very difficult problem presented in the proposal for a trade j agreement with the United States. "Our Government i.;. I believe, doina its best to adjust our tarh'fs along lines which will meet the spirit of the Ottawa Agreement—that British manufacturers should receive consideration from the New Zealand Government to the extent of ensuring to them a reasonable chance of competing with New Zealand manufactured goods on our markets here. "It would appear, therefore, that it I will be difficult to make any further adjustments of tariff sufficiently acceptable to the United States to induce the Government to allow importations of foodstuffs, without, at the same time, laying ourselves open to the suggestion that the spirit of the Ottawa Agreement was to be interpreted as applying to the United Kingdom but not to us." After discussing the position of the beef exporters and the bobby calf veal trade, Mr Acland concluded by expressing the hope that no hasty decisions would be made at the meeting which might prejudice New Zealand's position on the British market, which | he had endeavoured to show was of 1 so much greater value to the Dominion than it would appear possible for any foreign market to be. "Goodwill as between ourselves and our principal market is, in mv opinion, a priceless asset to us, and should not lightly be dealt with."