THE PRESS THURSDAY, JUNE 25, 1981. Trade mission to Canada

Press, 25 June 1981, Page 16

THE PRESS THURSDAY, JUNE 25, 1981. Trade mission to Canada

The New Zealand business and finance mission touring Canada will have served a useful purpose if it heightens consciousness in both countries of trade between New Zealand and Canada. The mission is being received well and predictions are being made about large increases in trade. If this came about, the results would be very welcome in this country. New Zealand has trade offices in Vancouver, Ottawa, and Toronto. ■ Although the idea of • increasing trade with Canada is not new, the growth in trade has generally been steady and has been far from spectacular. From New Zealand, the export trade has been greatest in beef, lamb, and cheese. Canada sells a great deal of forestry equipment to New Zealand.

The main focus of Canada's trade in manufactures is the United States, which takes about 70 per cent of Canada's exports. Canadian wheat sells world wide. Canada has been concentrating much of its attention on the Pacific — a concentration that is partly, related to the constitutional relationship between the provinces and the federal Government.

The Petrocorp-Alberta Gas Chemicals joint venture has increased New Zealand awareness of Canadian technology. The prospect of New Zealand’s major energy developments might attract some investment to this country, but it would be as well to bear in mind the caution expressed on this point by the Development Finance Corporation’s

American representative, Mr .Chris Parkin, who is on the mission. He has said that New Zealand should not expect a rush of Canadian investment. The inflation rate in New Zealand and the constantly slipping New Zealand dollar must combine against New Zealand's attraction as a place for investment.

Last August Mr Taiboys, then Deputy Prime Minister, made an official visit to Canada. He toured several provinces and discussed wider economic co-operation between the two countries. A trade agreement already exists; it was signed in 1932 and revised on a technical point of preferential tariffs in 1972. Considerable work has been done in revising the treaty again to bring it up to date. Although the revised treaty has not yet been published, it is believed mostly to embody some of the arrangements and trade practices that already exist. It is also believed that it will cover such matters as preferential tariffs and duties. So far as can be ascertained it does not provide either for vastly increased access to New Zealand for Canada, even though the New Zealand import licensing system has irked many Canadian exporters; nor does it provide vastly increased access to Canada for New Zealand’s agricultural produce. The chances seem strong that the trade between Canada and New Zealand will continue its steady growth. In spite of the trade mission’s hopes, substantially greater trade may have to wait for much brighter days in both economies.