“FREE TRADE COMING”

Press, Volume XCV, Issue 28314, 27 June 1957, Page 12

“FREE TRADE COMING”

Prediction By Economist

(New Zealand Press Association) AUCKLAND, June 26. Free trade is coming and the era of ‘‘protectionism” is on the way out, Professor H. R. Rodwell, professor of ecoomics at Auckland University College, told a meeting of the Economic Society to-night. He has just returned from nine months in Europe and America.

‘‘l have come back with a great hope for the future and a grave fear for our part in it;” he said. ‘‘We are going to have to get out and sell—and sell where we can. ‘‘To do this, we will have to take great care about costs. We cannot allow our costs to get out of line with the rest of the world, as they have been doing.” Imperial preferences “that legacy of the Ottawa Agreement” —have got to go, said Professor Rodwell. England is being forced to enter into a European free trade group to survive. ‘‘A free trade area,” he said, ‘‘with Western Germany inside it and England outside it will mean the end of England. Britain’s Only Course

‘‘That is all there is to it. England will , have to sacrifice everything else for it. England will have to let agricultural produce in from Europe and let Commonwealth preferences go—there is no other course she can take if she is to trade freely with Europe. “New Zealand’s eyes will have to turn toward European and other markets,” he said. ‘‘There are 200 million people in Europe we can get to. But we can only open up markets in Europe if we are prepared to play ball with them. We have got to buy if we are going to sell—and if we do not sell we will lose, anyhow. ‘‘And, if we ask fancy prices—boosted by subsidies —we will not sell, either.

‘‘The time is coming fast when we will have to get out and sell at what the market can afford,” he ■said. “We will have to do this even if it means some hardships. That is the price we have to pay for the mistakes of the past.”