OTTAWA TRADE AGREEMENT

Press, Volume XCVI, Issue 28399, 4 October 1957, Page 11

OTTAWA TRADE AGREEMENT

Manufacturers Ask For Review “The Press” Special Service WELLINGTON, October 3. The New Zealand Manufacturers’ Federation wants the Ottawa Agreement reviewed becausb of the marked change in conditions since the agreement was signed in 1932. The annual report to the federation’s conference said that as farmers’ organisations also desired a review of the agreement a strong case should be able to be put to the Government for early action. The main provisions of the existing agreement of concern to manufacturers are the fixing of ceiling rates of duty on some items in the customs tariff, the report continued, the margin of preference granted to some United Kingdom goods, which resulted.in higher costs to industry for some of its plant and materials, and New Zealand’s obligation to extend British preferential rates of duty to all goods from non-self-governing territories, which include some of the countries with low costs of production. The federation has asked district associations to form study groups to consider all aspects of the problems, and an invitation has been extended to the principal organisations representing primary producers proposing joint discussions. Trade with Japan

One of the results of the trade mission to London had been to show that New Zealand should explore alternative export markets for its primary products, and Japan appeared to offer opportunities, the report said. It was important to recognise the wide differences in costs of production between New Zealand and Japan. “Just as Japan would buy from us what the Japanese want and what it suits them to buy, so New Zealand should be selective in what we agree to import from Japan,” said the report. “There is ample room for development of trade from Japan in items which are not manufactured here, and which would not compete with goods produced by New Zealand workers.”