Trans-Tasman Trade Paper Sees Danger In Imbalance

Press, Volume CII, Issue 30125, 8 May 1963, Page 22

Trans-Tasman Trade Paper Sees Danger In Imbalance

(N Z J>.A.-Reuter —Copyright) MELBOURNE, May 7. There was a danger that the long-term benefits of the useful trading relationship between Australia and New Zealand would suffer if Australia held hard to its present 'advantage in the trade’ balance, the Melbourne “age” said this morning.

In an editorial headed: ‘More trade is answer to New Zealand imbalance,” the “Age” said the present trade balance between Australia and New Zealand was nearly five to one in favour of Australia. Australia should check the imbalance before it became an unnecessary political issue, the “Age” said. _ It said New Zealand felt the shock of Britain’s application to join the Common Market more than Australia. But there had been one good result. It had brought New Zealand and Australia — neighbours in South-east Asia as well as members of the British Commonwealth closer together. In trade, however, there were obvious difficulties. Almost all the primary products New Zealand relies on

for export were staples of the Australian economy. Because of this, and because of the difference in size between the two countries, equalisation of the trade balance was improbable. The “Age” said the New Zealand trade mission at present in Australia found that there were ways of increasing trade outside the traditional channels. < The mission was concentrating on a variety of manufactured goods as well as tourism, the editorial said. The best way to correct New Zealand’s substantial deficit with Australia was through an over-all increase in trade, the “Age” said. Negative attempts to cut back, rather than to increase the volume of trade should be avoided. Australia and New Zealand had every reason to regard their individual needs to improve trade outlets as providing a common interest in more, not less, trade across the Tasman, the editorial added.