Increase In Trade Between New Zealand And Australia

Press, Volume XCIII, Issue 27913, 9 March 1956, Page 12

Increase In Trade Between New Zealand And Australia

(New Zealand Press Association)

WELLINGTON, March 8. The trade understanding between New Zealand and Australia announced last night will, it is estimated, mean an increase in exports to Australia of a year. The increase this year will be about £2.700.000, making a total of £9.000,000, and next year there will be a further estimated increase of £1,500.000. These figures are contained in a full statement on the understanding issued by the Prime Minister (Mr Holland) this morning. As part of the understanding. New Zealand has undertaken to encourage extra imports from Australia with the object of increasing trade and making the new arrangement self-balancing. Mr Holland said that Australian import licences for New Zealand fish would cover all fish available for the Australian market. For timber there would be no licensing difficulties for ell the quantities that could be sold and shipped. Other New Zealand exports would be increased by an estimated £890.000 a year. Bo*h countries would co-operate in meeting any shortage of onions and potatoes in New Zealand. New Zealand timber exports were estimated to be increased by 21.000.000 board feet this year, and bv an estimated further 14.000.000 board feet and 10.000 tons of newsprint next year. The increases in the value of timber exports were about £1.600.000 this vear and £2.400.000 next year. New Zealand fish exports could be increased by about £240.000 this year. “Very Great Importance” “This new trade understanding is of very great importance to both Australia and New Zealand,” Mr Holland said. ‘‘lt recognises that the interests of both countries are best served by increased mutual trade. As far as NewZealand is concerned it not only restores the position brought about by recent Australian import restrictions, but also provides for future expansion of our exports, particularly in our fastdeveloping forest industries. “The entire discussions with Mr Menzies, with the Australian Minister of Trade (Mr McEwen), and with other Australian Ministers have been conducted on the most friendly basis, and all concerned have been anxious to find solutions which would meet the problems of both countries, he added. ‘‘Mr Menzies and the other Australian Ministers I talked with showed a keen appreciation of. and a very real sympathy with. New Zealand needs, as well as an interest in the high quality and competitivelv priced forest products that New Zealand can offer.

“The mutual advantage of maximum trade between New Zealand and Australia was the over-riding factor in the discussions. From the very beginning of our talks it was very apparent that our problems were very similar, and that the task was to avoid decisions harmful to either party. Fortunatelv. personal relations existed that ensured friendly and understanding talks. “I had a number of discussions on details with Mr McEwen, and I must express my warm appreciation of his general attitude to the problems with which he dealt. Mr McEwen has manymajor problems under consideration. The chief of them is Australia’s bal-ance-of-payments deficit last vear of some £250,000.000. Australia’s im-

. ports problem is urgent and pressing. The provisions in G.A.T.T. limited quite substantially 7 the field of effort in the discussions, because under this agreement discriminatory action against other parties to G.A.T.T. would be a breach of its terms. We have therefore had to search for means within the existing agreements of dealing with the problems that originated the talks.

“Proposals for cutting down the export trade of either country were not seriously raised during the talks,” Mr Holland said, "and we set about studying ways and means of dealing with our problems from the constructive angle of increasing trade, rather than the destructive angle of reducing the flow of trade by means of import or other restrictions on both sides of the Tasman. The course we have agreed upon is fully in the spirit of the Anzac Agreement (Canberra Pact), and is consistent with G.A.T.T. “During the last few years, but particularly during the last three years. New Zealand has, both through Government and private enterprise activities, been making enormous preparations to expand her earnings of overseas funds. This had mainlybeen through the development of industries and production based on our vast pine forests. At Murupara we have new newsprint, pulp, and sawn timber projects on the very point of harvesting our great wealth in that area, but in addition we have manv other projects, mainly initiated by private enterprise, which have reached the point of marketing, narticularly in the field of sawn pine timber. “N.Z. Could Absorb Only Part” “These developments could not succeed without a market for their groducts. and it is certain that New ealand could absorb only part of this increased production. “All our plans have envisaged Australia as a very suitable and natural market,” Mr Holland said. “New Zealand can compare with the rest of the world both as to price and as to quality. All imports into Australia are subject to licensing, and the withholding of licences for these new exports created a very real problem. This position resulted in New Zealand initiative in seeking the trade talks. “I should point out. however, that the Australian Government has indicated that its balance-of-payments problem is so acute that a failure to achieve the self-balancing objective and a continuance or aggravation of the Australian balance-of-trade problem would mean that Australia could not avoid a re-examination of the new arrangements. “The essence of the understanding now reached is an increase in reciprocal trade between New Zealand and Australia, two countries whose future progress is obviously largely bound together.” Mr Holland said. “We are increasing trade to our mutual advantage. within the framework of existing agreements. ‘ The sympathetic hearing I received when I put forward claims on behalf of New Zealand was most encouraging, and I should hope that I left with the Australians an impression that New Zealand, on her part, both understands and is anxious to help where she can in Australian trade problems. “The understanding we have reached will be a very great assistance in our present deeds and will, I hope, be the forerunner of future similar discussions as the need for them arises.”