Trend To Pacific Trade

Press, Volume CV, Issue 31030, 9 April 1966, Page 19

Trend To Pacific Trade

(N.Z. Press Association) WELLINGTON, April 8. Whether Britain joined the European Common Market or not it was likely that New Zealand’s trade with her would continue to be eroded, the director of the Institute of Economic Research, Mr J. W. Rowe, said in Wellington. Speaking in the Victoria i University Political Science ! Society’s series of talks on . "The Next 10 Years and Beyond,” Mr Rowe said the ’ future pattern of New Zea- ! land trade was likely to be closer ties with the United : States, Japan and the devel- | oping countries. I “It is not accidental that economic growth in New Zeai land since the war has been I slower than in most other ! developed countries, and it i will be no accident if in 10 I years’ time we have lagged I still further behind.” I “Because I believe economic [forces to be entirely within [the control of man—even New Zealand man—a balance ) of payments’ deficit in 1975 [ will, in my view, be of our i own choosing, and not the result of economic circumstances or foreign malevolence,” said Mr Rowe. He told his large audience that during the last 10 years considerable efforts had been

made to insulate the New Zealand economy from overseas trade developments, and. before looking into the

future it was necessary to ask what success had attended these efforts. “It is obvious that the local content of finished goods is now higher,” said Mr Rowe. “It is not so obvious that New Zealand’s total dependence on imports is any less if one takes into account raw material and capital goods imports, as well as finished consumer goods “Import dependence is not so easy to measure, but a study of the last decade suggests that there has been very little real change.” It could not be said that New Zealand economy was was any less open today than it was 10 years ago. The country was just as dependent on overseas trade, but the dependence expressed itself in a different way.