The Press MONDAY, AUGUST 5, 1963. Trade With Russia

Press, Volume CII, Issue 30201, 5 August 1963, Page 10

The Press MONDAY, AUGUST 5, 1963. Trade With Russia

No spectacular expansion of trade between New Zealand and the Soviet Union can be expected to reault from the most-favoured-nation trade treaty signed between the two countries last week. Although each country attached an imposing list of its products to be “ offered ” for sale to its partner in the agreement, it does not necessarily follow that an increase in trade in these products—or. indeed, any trade at all in them—will take place. In the nine months ended March this year New Zealand's exports to Russia totalled £84,860 (of a global total of £203 million). The whole of New Zealand’s exports to Russia in this period comprised “ meat, fresh, chilled or "frozen" (presumably nearly all frozen mutton). In this period New Zealand’s exports of meat to all destinations totalled more than £57 million. Russia has also been a sporadic buyer of small quantities of New Zealand wool, though not in the last two years. All in all, there have been no indications in recent years that the Russian market for any New Zealand product was likely to become significant. New Zealand’s imports from Russia totalled £152,821 (current domestic value) in the nine months ended March this year, when imports from all sources totalled £192 million. Manufactured fertilisers accounted for £83.689, or about two-thirds, of Rus-

sia's exports to New Zealand in this period. The only other Russian product of which New Zealand purchased more than £ 10,000 worth was undressed fur skins (£28,275). In the terms of the agreement, Russian imports into NewZealand will qualify for the “ most-favoured-nation ” tariff, instead of the general tariff. Fertilisers and undressed fur skins are both admitted free of duty under either the general tariff or the most-favoured-nation tariff, so neither of these items will be affected. A study of the commodities entering into trade between the two countries does not disclose any obvious vehicle for increasing this trade, nor does the official communique issued after the signing of the treaty. The communique referred, in general terms, to the implications of most-favoured-nation treatment without singling out any commodity for special mention. This lends weight to the suggestion, made in these columns soon after the arrival of the Russian trade delegation, that much of the interest in the negotiations derived from political considerations rather than the likelihood of economic benefits to New Zealand. This is no reason, however, why New Zealand exporters of such products as mutton, which have already been accepted by Russia, should not capitalise on the better trading basis now established.