DOMINION’S TRADE WITH SWEDEN

Dominion, Volume 29, Issue 150, 20 March 1936, Page 6

DOMINION’S TRADE WITH SWEDEN

Room For Development MORE DIRECT COMMERCE NEEDED ■ Though almost all Swedish exports to New Zealand came straight to the Dominion, only a very small percentage of New Zealand exports to Sweden go there direct. This accounts to a large extent for what appears to be a great trade balance in favour of Sweden. In an address to members of the Wellington Chamber of Commerce yesterday, Mr. G. M. Lindergren. secretary of the Swedish Chamber of Commerce for Australia. New Zealand and the South Sea Islands, and editor of tbe SwedishAustralian and Swedish-New Zealand Trade Journal, explained tills and other features of the commerce between bis country and New Zealand, and suggested more direct commerce could be fostered.

Tbe magnitude of the trade between the two countries was, considering their size, remarkable, said Mr. Lindergren. According to tbe latest published statistics it amounted to about £350,000. Trade relations between the two countries were as close and friendly as New Zealand’s trade with any other foreign country, one reason for this being that New Zealand and Sweden were closely related in many respects and had much in common. New Zealanders and Swedes enjoyed the same freedom and democracy and had similar ideals and institutions derived from a common heritage. “Sweden has for many years bad a very good market iu New Zealand, thanks principally to the nature of the goods she exports, such as separators and other dairying and agricultural machinery, electrical machinery, oil engines, bull bearings, machinery and tools of trade, telephones, woodpulp, timber and paper of all kinds. All these articles are necessary for industrial and domestic use. The Swedish separators, for instance, have contributed very largely iu developing the dairying industry, and tbe other goods mentioned are also essential to industry. Swedish exports to this country are now practically all direct, that is to say, tbe trade does not go through London or Germany, as it did many years ago.. Swedish manufacturers have established direct contact with this country, and the direct exports from Sweden to New Zealand may therefore on the whole be said to be very well organised indeed. Indirect Contact. “But there is a different story with regard to the direct exports from New Zealand to Sweden. Only a very'small percentage of these exports go direct to Sweden. Take the 1931 figures. The direct exports to Sweden amounted to £117,529 according to your official figures, and the imports from Sweden to about £250,000, more than twice as much. Clearly you say there is a great balance in favour of Sweden. But no account is taken of tbe New Zealand goods that Sweden buys from Great Britain and other countries. Recently this matter has been investigated in Sweden, and it might surprise you greatly to learn, ns it certainly did me, that during tbe four months under investigation it wag found that not even 10 per cent, of the New Zealand goods we imported came direct. About half of those imports came through Great Britain and tbe remaining -10 per cent, came through other countries. So that next time you refer to the official statistics kindly remember that to get the true state of affairs regarding New Zealand goods that Sweden buys, you must multiply the official-figures several times, perhaps nine times, perhaps more, and then you will find that the real balance of trade, as distinguished from the apparent, is in favour of New Zealand rather than Sweden.

‘.‘You may ask : ‘Why Is that so? Y by don't you Swedes come here and buy direct from us?’ To this I can only reply that the present tendency of indirect trade is merely a logical consequence of economic trade developments involving many countries. In the fir-st place, Sweden is not a trading nation; she is not. go favourably situated. Sweden is an industrial country, which only exports its own manufactures. Great Britain, Germany, Holland, Belgium- and even little Denmark are, on tbe other hand, great trading nations, who bur products from all over the world, and then sell these same products after keeping their own share to other countries. Consequently international trade has meant a great deal to those countries, favourably situated as they are for such transit trade. It is all au historical development. Consequently tbe Swedish importers are not at all eo well organised as the large international trading houses iu the countries I have mentioned, which by the aid of large shipping lines and huge ports and other facilities have developed into tremendous transit countries for the goods that they obtain from overseas. Further Development. “Yet, Sweden, during recent years, has developed economically to such an extent that she is now more and more herself importing her own requirements iu foodstuffs, etc., from overseas. Tbe direct import of New Zealand goods is an instance. This has grown enormously during recent years, and there is plenty of room for further development. when it is remembered that still only about. 10 per cent, of our imports from New Zealand come direct. To show bow the direct exports of New Zealand goods have grown the following figures will suffice: 1920. only £2O: 1930, £6600: 1933, £34,000; 1934. £117,590.” In 1931, said Mr. Lindergren. Sweden imported apples worth £280,000, yet the amount imported direct from New Zealand was only £l5OO. There was surely room for a larger direct trade which would eliminate the added expense of trade through London. Thus there would be a better return for the producer or, if Sweden was able co buy cheaper, there would still be au advantage because Sweden would be able to buy more. Tbe value of pears imported was £140,000, aud in this respect New Zealand led Australia, showing that someone had seen the value of direct trade. He did not see why apples, too, should not be sent direct There was room for improvement, also, in the Dominion’s trade to Sweden in tallow, fat, bides, skins and wool, most of which were now being bought indirectly. Mr. Lindergren expressed his willingness to assist business men in any efforts they might make to foster direct trade.