TWO-WAY TRADE

Dominion, Volume 29, Issue 203, 25 May 1936, Page 10

TWO-WAY TRADE

As was to be expected, the announcement by the Australian Federal Government of a new overseas trade policy, loaded against foreign countries with trade balances unfavourable to. the Commonwealth, has not been well received. Japan especially is resentful of the terms proposed. There is to be a system of import licensing, Iran which all goods of British Empire origin are to be exempt. With regard to other countries, the principle of trade reciprocity will determine the issue of licenses. Where the trade balance is satisfactory licenses will be freely granted. In this country the slogan commended to consumers is to favour New Zealand-made first, British second, and foreign articles third. Australia proposes to limit the choice by expressly banning the importation of certain classes of foreign goods, except by the consent of the Minister of Customs, in order to stimulate her secondary industries. The new duties on foreign textiles and cotton piece-goods will be advantageous to the British manufacturers, who should also greatly benefit by the banning of a lengthy list of foreign-made goods which at present come into Australia at cut-rate prices. The New Zealand Government has not yet elaborated its policyin regard to overseas trade relationships, but it has had two encounters lately with manufacturing interests, one local and the other representing the United Kingdom. The New Zealand Manufacturers Federation asked for increased protection for the secondary industries to compensate for the rise in costs involved in the general increase in wages and the shortening of hours. The Prime Minister assured the deputation that as the development of the secondary industries was one of the main planks in the Labour Party’s platform their interests would be carefully studied. The party does not favour tariffs, preferring, as was pointed out during the election campaign, a quota on imports. In his reply to the representatives of the British manufacturers Mr. Savage remarked that "when the representative of New Zealand (Mr. Nash) meets the representatives of Great Britain to discuss trade he will ask if they are prepared to take more New Zealand produce in exchange for the manufactured goods of Great Britain.” .And he added :“I see nothing complicated about that.” Perhaps other people more experienced in the world ol commerce may see considerable complications. Mr. Nash may be put in the position of having to say to the British manufacturing interests that we will buy more from them if Britain will buy more from us. Any undertaking of this kind that may be considered prejudicial to the New Zealand manufacturers will mean trouble for the Government unless benefits in compensation are given. .A rise in the prices of New Zealand-made goods will not help very much if it is to the advantage of the cheaper imported article, and any attempt to load the latter with a duty by way of balancing the position will mean trouble overseas, and with our own primary producers as a result.