Trade With Australia

Dominion, Volume 28, Issue 33, 2 November 1934, Page 13

Trade With Australia

Sir, —Throughout New Zealand there is a strong desire that the largest possible share of our total import trade shall ■be done with Great Britain. We give first preference, of course, to our own manufacturing industries; but our next .preference is to the Mother Country, our best overseas customer. That is the sentiment. It is not, however, at present expressed in action, for instance, the writing of our tariff. In. most imported lines, the duty to-day on Australian products is exactly the same as it is on goods imported from Britain. This does not mean, even, that Britain and Australia are given equal chances. Comparing the competitive positions of British and Australian manufacturers, it is clear that, on account of the difference in freight and exchange, Australia enioys a considerable advantage over Great Britain in the New Zealand market. It is difficult to estimate the effects of exchange in this connection; but we may note that the Australian Tariff Board and the Commonwealth Government have, after allowing for its influence on domestic costs, concluded that 7* per cent, to 12} yer cent, is a fair allowance In a general way, it would not be an overstatement of the position to say that, taking both exchange and freight into account. Australia lias in this market an advantage of at least 15 per cent, over Britain.

In order to give Britain and Australia equal opportunities in this market, it would be necessary to fix the tariff on all imports of Australian manufactured goods at 15 per cent, above the rates on corresponding goods from the Unite! Kingdom. To give a real preference, a definite advantage to Britain, the difference in duty would, of course, need to he made greater still. The following figures reveal the startling increase of Australia’s share of our total import trade in certain lines during the last five years. For example, of our importation of boots and shoes, Australia's share of the trade has increased ovmthirtyfold. from 0.3 per cent, to 10.3 per cent, of the -total. 1925. 1933.

% ' % Boots and shoes 0.3 10.3 Leather [roods ol.l Fancy goods 3.6 6.5 Paint and varnish 7.9 20.3 Electrical goods 1.7 13.6 Hosiery 0.1 11.2 Millinery 2,8 6.0 Clothing 0.7 Hardware 4.4 7.0 Agricultural machinery ... 4.4 13.5 Stationery —I am, etc.. 13.0 IS .9 A. E. Wellington, October 30. HANDER.