Freedom to Trade

Press, Volume XCI, Issue 27639, 21 April 1955, Page 12

Freedom to Trade

Mr J. Boyd-Clark’s presidential address to the Associated Chambers of Commerce of New Zealand was a stimulating challenge to those who profess to believe in the system of free, competitive enterprise.. It is, in New Zealand, by no means a burning and abiding faith. Mr Boyd-Clark was able to point to the increasing inclination of commerce and industry to eliminate competition rather than to meet it. He noted the general tendency of all sections of the community to shout, “Unfair”, and to run to the government for protection whenever competition threatens their comfort and security. He drew attention to the eagerness of many to have the benefits of the two worlds of freedom and protection—the manufacturer who wants both freedom from price control and a protected home market; the farmer who wants to be able to buy his tractors and equipment and supplies in the markets cf his choice, but dislikes the idea of his produce meeting competition in the world markets. Mr Boyd-Clark illuminated, most significantly, the curious paradox, in a country dependent as few other countries are upon its overseas trade, of widespread suspicion of and resistance to the international organisations that have as their principal object the promotion of world trade. Mr Boyd-Clark referred to these as “ the international agreements, “ some of which we are members of, “ and some of which we regrettably “cold-shoulder ”. It is more than a little ironical, indeed, that those who oppose New Zealand’s membership of the General Agreement on Tariffs and Trade or the International Monetary Fund invariably do so on the ground that membership involves some surrender of our economic'

“ freedom ”. But when the complaints against the rules of these organisations are examined it is always found that the “ freedom ” thus jeopardised is the freedom to restrict—freedom to shut out the goods of any competitor who is unfortunate enough to have a lower standard of living than our own, or freedom to juggle with our exchange rates to give ourselves an advantage over our competitors in world trade. When pressed, these champions of freedom will admit that such liberty, used selfishly by a number of countries, would rapidly bring the world’s commerce to a standstill. They admit there must be some rules of fair play in the international trade game; but apparently they think that New Zealand, because of its smallness, or perhaps because of its special virtues, should not be bound by them. And they are often among the loudest in denouncing any other country that takes advantage of the “ escape clauses ” in the international agreements—as New

Zealand has done, very liberally, since the General Agreement on Tariffs and Trade came into force. Freedom to restrict may serve the interests of a few traders in the short rim; in the long run it will i benefit neither individuals nor the 'country as a whole.