OVERSEAS TRADE

Dominion, Volume 23, Issue 138, 7 March 1930, Page 12

OVERSEAS TRADE

OFFICERS FOR ABROAD CANADA AND AUSTRALIA AVENUES OF WEALTH New Zealand trade with Canada and Australia, and how they hoped to foster its development, was referred to by the recently appointed trade commissioners to these two countries, Mr. J. W. Collins and Mr. L. J. Schmitt, when they were entertained at a farewell luncheon tendered them yesterday by members of the Wellington Chamber . of Commerce.

An outline of what their duties would be was given by both speakers, who also explained that the tourist traffic and any other avenue likely to bring wealth to the Dominion would be their special ca.re. ‘‘The provision of adequate snipping services between New Zealand’s main ports and the United States and Canada has been an important factor in the growth of trade with those countries, said Mr. Collins, “and in this connection I cannot but make mention of the fine propaganda work of the Canadian Pacific authorities and the Canadian National in New Zealand. Their efforts have resulted in a better knowledge of Canada and of the comfortable transport facilities offered to visitors to that country and to other travellers passing through it on their way to more distant parts of the world. In this connection .it might be mentioned that the Canadian National Steamships propose to provide an improved steamship connection between New Zealand on the one hand and New York, Boston, Halifax and Montreal on the other Trade with Canada. “The growth of trade with Canada har. however, been due to other causes as well.” Mr. Collins added. “In the first place Canada has had a trade representative in New Zealand for some considerable time, and the rapid increase in trade which has occurred during the last few years must be due in no small measure to his work. Secondly, New Zealand’s participation in the Canadian National Exhibition held at Toronto in 1926 undoubtedly furthered the trade of the Dominion to a considerable extent.” Reciprocal Tariff. Mr. Collins went on to say that the operation of a reciprocal tariff made in 1925 between Australia and Canada had also had an important effect in improvin'.' New Zealand's mutual trade relations, for the tariff concessions therein extended to Australia were extended to New Zealand by Order-in-Council made under a provision in the Ratifying Act. Thus reciprocal relationship in tariff matters between Canada and New Zealand was maintained in the absence of a formal trade agreement. In spite of all these inducements to the development of trade between the two countries there could be no doubt but that the opportunities provided had not by any means been fully exploited, for there were many Dominion products in which trade had been almost entirely neglected. Figures showing the growth of trade between the two countries were quoted by Mr. Collins. In 1925 New Zealand exported to. Canada goods to the value of £423,000 and Canada sent to the Dominion in that year goods to the value of nearly £4,000.000. Five years later, in 1929, .New Zealand’s trade had grown to the value of £3,354,000 and Canada’s to £4,750 000 odd. A study of the trade figures showed that the credit balance in Canada’s favour was gradually diminishing and with one exception the figures for 1929 showed the least credit balance in Canada’s favour for years past. Prospects Good. “At the same time,” said Mr. Collins, “1 would like to emphasise this salient fact. That is that New Zealand treats Canada with exceptional favour in regard to the goods she sends to us, and on Canada’s part New Zealand is treated more favourably than any part of The Empire in regard to our leading exportable products. The prospects therefore of. increasing our trade are exceptionally good if this mutual arrangement is continued. It is known that Canada Imports largely from foreign sources, commodities which we could readily supply in their own non-productive season. We have done very little, for instance, with Canada in the fruit trade. We sold apples in 1928 to the value of £lB5, while Canada’s total importations were valued at £225,000. Outside of the United States we were the only Dominion sending this fruit to Canada. We did not sell a single pear although Canada buys nearly £200,000 worth annually. “In casein,” said Mr. Collins, “we have catered for ■ more than half the value of trade, and if we take the whole we will sueeed in cutting out supplies drawn from non-Empire countries. Hemp we sold to the value of £2764 out of a total of £221,249. There is no duty on this commodity, and if New Zealand millers Will only supply the grades required we should secure the bulk of Canada’s trade. Opportunities for Exporters. : , “In hides and skins Canada's purchases are most valuable. Our trade in these Commodities is growing, but growing very slowly, and realising that Canada's total purchases are over £2,090,000 worth, and that we supply only a few hundred thousand pounds worth, it will be realised at once what a wonderful field exists for expansion of our trade. The bulk of Canada’s trade in this commodity is likewise done to-day through foreign sources. In tallow, unimal fats, agricultural seeds, meat, kauri gum, fruit, and wool, there are likewise I consider fine opportunities for Our exporters.. In two commodities New Zealand has obtained a commanding position. I refer to sausage casings and butter. In casings the total imports aggregate £424,000, of which New. Zealand supplies £371,000 worth. Our chief competitor jn this commodity is again the United States. The other commodity is. of course, butter. Last year New Zealand captured 96 per cent, of the total imports, aggregating 16.756 tons, and of a value of £2,700.000. The reciprocal duty on butter is Id. per lb.” Remarks by Mr. Schmitt. “Earlv in April I expect to commence the first portion of the work connected with my new appointment,” said Mr. Echmitt. This will comprise interviews and conferences with persons and firms, agents and associations interested in New Zealand’s export trade with Australia, and in the business of catering for tourists. As New Zealand’s representative in the Commonwealth I shall endeavour ta live up to your expectations, and uphold the high ideals that New Zealand always stands for. Reorganisation. • Mr. Schmitt said the Government had decided “that the reorganisation of New Zealand’s representation in Australia should include the establishment of a head office in Sydney. This would not be an additional office, but would replace the present Sydney office. A branch office would be maintained in Melbourne, and it was the intention of his Department to consider the appointment as agents firms who were in private enterprise as tour promoters in all the principle cities and towns of Australia, and work in with them. They would operate on the usual commission basis common to this business.

Development of trade with the East, ■aid Mr. Schmitt, would probably take place either through Sydney or through Brisbane. Later perhaps there would be direct shipments. He intended to make inquiries to see which was the more suitable port. With the co-operation of all

parties in Now Zealand interested in tlie tourist traffic increased numbers should be encouraged to the Dominion. Quality of News. The fear that a large proportion of the news that was cabled to New Zealand about Australia and sent to Australia about New Zealand was not of as constructive a character as was desirable was expressed by Mr. Schmitt. People in both countries had very greatly exaggerated ideas of eaeh other’s shortcomings and troubles. “Unfortunately New Zealand and Australian trade figures have been diminishing during the past three years,” said Mr. Schmitt. “One of m.v greatest problems will be to reverse this process. “Now Zealand's prosperity is largely bound up in Australia’s prosperity and vice versa, and insofar as the tourist trade is concerned this is most certainly a truth Our financial relations are very closely interwoven because the same banking companies and insurance companies operate in both countries.”