Trade With Australia

Press, Volume LXXII, Issue 21867, 21 August 1936, Page 10

Trade With Australia

The Australian Trade Commissioner in New Zealand, Mr R, H. Nesbitt, must be thanked for his frank, if mildly indiscreet, remarks about trade between Australia and New Zealand. Since 1932 the governments of these countries have been waging a petty trade war without advantage to anyone and with considerable loss to consumers. The trouble originated in the imposition by Australia of an embargo on the import of New Zealand potatoes, ostensibly because New Zealand potatoes were liable to be infected with corky scab and actually because it was desired to give additional protection to the Australian grower. In 1932 New Zealand retaliated by placing an embargo on the import of Australian citrus fruits, though it was alleged by the Government that the reason for the embargo was the risk of introducing certain plant diseases. The result is that from time to time potatoes are sold in Australia at double the prices ruling in New Zealand and that, despite some relaxation of the embargo, citrus fruits are scarce and dear in New Zealand. Mr Nesbitt says that the scientific reason for the embargoes has proved a myth; and in this he is supported by the conclusions reached at a conference of experts in Canberra in 1934. Mr Nesbitt also says that the economic reason is a myth; and if he means by this that Australian potato growers are getting more protection than they need he is certainly correct. The Tasmanian Minister for Agriculture, Mr R. Cosgrove, said in Christchurch a few months ago that he was convinced that New Zealand potatoes could be imported into Australia without depressing the local market. It must therefore be concluded that the dispute goes on because the governments concerned are obsessed bv the idea that international trade is a sort of struggle in which success is measured by “favourable” balances. Mr Nesbitt further suggests that the New Zealand Government may be deferring any agreement with Australia until it has completed negotiations with Great Britain. It can only be said that there is something inherently wrong with a trade policy which draws New Zealand’ into a trade war with her nearest neighbour and creates an unnecessary scarcity of essential commodities; In any case, it is difficult to conceive of any agreement with Great Britain which would prevent New Zealanders from getting cheaper oranges or Australians from getting cheaper potatoes.