OVERSEA TRADE

Dominion, Volume 20, Issue 54, 27 November 1926, Page 10

OVERSEA TRADE

“AN UNSOUND BASIS”

RECIPROCITY WITH NORTH AMERICA

In order to show the balance of trade between New Zealand and the United Kingdom and New Zealand and Canada and the United States_ of America, Mr. G. H. Scott, speaking at the annual meeting of the Association of British Manufacturers and Agents, of which he is president, quoted statistics of the Dominion’s exports and imports to and from the respective countries.

“One of the most disturbing features of our trade during the past sixteen years had been the steadv decline in the percentage of imports from the United Kingdom,” he 'aid “In 1909the' percentage of imports was 62) per cent . In 1925 this had declined to 49 per cent. For the first nine months in 1926 this hnd still further declined to 46J per cent. No doubt the strike in England had considerable effect upon the figures for. 1926, but the fact still remains that a very constant decline is recorded for the last sixteen years. This is a most disturbing fact to all those who realise that our, economic safetv is so closely associated with the'necessity for a full exchange of products between ourselves and the United Kingdom.” For the years 1921 to 1925 itnt’usive and the first nine months of 1926 total exports to the United Kingdom amounted to £226,335,369. During the same period our imports amounted to £127,748,657, leaving New Zealand a credit balance of £98,586,712. This represented a huge sum of money, and it was an unfortunate thing for this Dominion that it spent a very large proportion of it with foreign nations The figures show that our trade relations with countries other than the United Kingdom were on an unsound basis. Regarding the United States of America. Dominion imports for the period 1921 to 1925 and (lie first nine months of 1926 were £44,465,788, and exports were £19.509.151, leaving a debit ■ balance of £24,921.637. Regarding Canada, New Zealand imports for the same period were £16,656,330, and exports £3,349.882, leaving a debit balance of £13,306,448.

“The total trade with foreign countries during the period under, review amounted to £70,663,509, of which sum trade with Canada and the United States of America accounted for £61,122,118,” he continued. “It is therefore obvious that bi far the largest percentage of trade done outside the United Kingdom is with these two countries. The result of our trading operations with them resulted in a debit against this Dominion of £38,228,085. I would like to say in passing that these very large debit balances represent hard cash which goes out of our Dominion and outside the Empire and constitutes a very serious loss.

“Another aspect of our trade which shows that the basis of it . is entirely wrong is in connection with the development of our exports to these two countries. An examination of the figures reveals the fact that in 1925 the volume of our exports to Canada was £20,000 less than for the year 1921, whereas our imports during the same years had more than doubled. Surely this again confirms the fact that our trading basis is incorrect. To some degree the increase of imports from Canada represents the result of American capital operating through Canada as a distributing point. The Hon. W. D. Stewart, Minister of Customs, very ably negotiated reciprocity in regard to .some items of our trade with Australia. It is to be hoped that he will focus his ability on the problem presented in the above facts and figures and evolve some measure of recinrocitv between our country, the United States of America, and Canada.”