RECIPROCAL TRADE PACT

Dominion, Volume 34, Issue 228, 23 June 1941, Page 10

RECIPROCAL TRADE PACT

Canada And New Zealand IMPORT RESTRICTIONS CRITICIZED Referring to the proposed extension of the reciprocal trade agreement between Canada and New Zealand, the president of the Bureau of Importers, Mr. G. Jackson, Auckland, says that the benefits of the agreement, from Canada’s point of view, have been largely nullified by New Zealand s arbitrary action in imposing import restrictions. ••The Minister of Customs, Mr. Nash, referred recently to a cablegram from Canada about rhe possibility of extending tho agreement for the duration of the war. and stated that it was likely that New Zealand would extend it,” says Mr. Jackson. •’The agreement was made in 1932, and has been amended and extended from lime to time. It would expire in the normal way at the end of September. The agreement had as-its object concessions in duties between New Zealand and Canada, and on a fairly wide range of commodities which Canada produces she is accorded duty rates in some cases equal to the rates chargeable on goods from the United Kingdom. On other commodities rates higher than those charged on United Kingdom goods are levied on Canadian products. These rates generally are lower than the duty rates charged on similar foreign goods. Matty of the Canadian goods covered by the agreement are exempt from payment of the 221 per cent, duty surtax. •‘Arbitrary Action.” “The agreement has worked satisfactorily ami smoothly, but trade between Canada and this country was very seriously affected by the unilateral action taken by this country in subjecting a wide range of Camidian products to total prohibition or severe import restrictions under the Import Control Regulations introduced at the end of 1938. The benefits‘of this reciprocal trade agreement from Canada’s point of view were largely rendered nugatory by the arbitrary action of New Zealand in imposing import restrictions and prohibitions. ‘‘Concessions in the rates of duty on goods imported from Canada are, of course, valueless to Canada when New Zealand totally prohibits or severely restricts the importation of such goods. Fortunately for this country Canada look no retaliatory action by imposing • any corresponding reductions or prohibitions of her imports from New Zealand. . Trade Figures. “Trade between Canada and New Zealand has always shown ;1 ‘favourable’ balance for Canada. The trade over the last three years has been as follows: —

that our exports to Canada under the agreement have considerably increased over the last two years. New Zealand’s imports from Canada, on the other hand, have fallen substantially tmeanse of this country’s unilateral action in imposing restrictions mid prohibitions on imports from Canad-t while the agreement was still in force. "The principal imports into New Zealand from Canada over recent years have been: Flour, wheat, canned fish, apparel, hosiery, footwear, cotton and silk piece goods, metal manufactures, machinery, agricultural implements, < lee trical heating ami cooking appliances, wireless sets, washing machines, refrigerators, rubber goods, timber, cardboard, printing and wrapping paper, motor vehicles, rubber tyres, clocks, carbide. Importation of ninny of the above lines from Canada is now totally prohibited. New Zealand’s principal exports to Canada are: Wool, greasy and scoured, sausage casings, hides, calfskin; and sheepskins, grass seed, tallow, kauri gum and casein.”

Exports Imports Excess To From •i i Canada. Canada. Import**. N.Z.£ ,Al. n.z. e 1D3S .. .... 1.112,831 4.834,640 3,721.815 1039 .. 032,254 4,301,130 3,428.885 1010 1,707,277 2,869.178 1,161.901 ‘•It will be seen from these figures