The Dominion. MONDAY, MARCH 10, 1941. TRADE AND MARKETS

Dominion, Volume 34, Issue 140, 10 March 1941, Page 6

The Dominion. MONDAY, MARCH 10, 1941. TRADE AND MARKETS

Markets absorbing £25, 000,000 worth of Australian products were lost when Germany over-ran certain European countries, particularly France and Belgium. Four-fifths of the lost trade concerned transactions in wool, and the Australian authorities have now -reported that this supply has been absorbed by Britain. Probably the creation of huge reserves, stored for the time being in the United States, has been a material factor in the business. The balance of the lost trade, £5, 000,000, has been made good by heavier exports to India, Malaya and New Zealand so that actually there has been no loss to the Commonwealth. The part played by New Zealand in providing extended markets for Australian goods is shown in the latest Abstract of Statistics. In 1939 this country obtained 13 per cent, of its total imports from Australia on the basis of declared value. Last year the percentage rose to 15.97. The increase in imports from all British countries (2.77 per cent.) was more than accounted for by the heavier purchases made from our neighbour. On the other hand, exports from the Dominion to Australia have continued to decline. In 1939 exports to that market took 3.91 of the total value, but last year they fell to 2.96 per cent. The peculiar conditions obtaining have made it necessary for New Zealand to obtain more manufactured goods from Australia, but it could be urged with reason that the Commonwealth should reciprocate, and make larger markets available there for New Zealand products. The war has,'of course, seriously reduced the foreign markets to which New Zealand shipped wool and other products. In 1939 exports to countries outside the Empire accounted for 12.28 per cent, of the total value, but last year for only 5.31 per cJ-'i. The marked increase in shipments to the Mother Country saved the position, for altogether she took over 87 per cent, of all that New Zealand shipped overseas, based on values. But there may be great difficulty in maintaining the shipping services to British ports,. so that the question of alternative markets becomes one of increasing importance. It can be taken for granted that masters of trade came within the scope of the recent discussions with Mr. H. L. Anthony, Assistant Minister of Commerce in the Federal Government, during his visit to this country, but there will be need for investigations much further afield and for a very careful study of probable shipping facilities. The accumulation of foodstuffs and raw materials here must create marketing problems in the future, and any and every opening that may be discovered for the disposal of these products would tend to bring the difficulties within more manageable proportions.