TRADE WITH CANADA

Dominion, Volume 35, Issue 7, 3 October 1941, Page 6

TRADE WITH CANADA

The extension of the trade agreement with Canada for a further year has become practically one of the automatic actions of the Government. It was first entered into in 1932 and each year since then an extension has been’ announced. Before the Socialists assumed office they used to contend that some better arrangement should be made. Trade agreements with many countries formed part of their official policy. In the Governor-General’s speech at the opening of Parliament in 1937 mention was made of the visit paid by the Minister of Finance to Canada and other States, when “the trade relationships between them and this Dominion” were discussed. The speech added ; “It is expected that these discussions will, in a number of cases, lead to the conclusion, at an early date, of trade arrangements which should provide increased opportunity for the disposal of this Dominion s primary products.” The agreements, with the exception of what proved to be a somewhat unprofitable one with Germany, failed to materialize, and of later years very little has been heard about the investigations that wei e to result in “arranging trade agreements to the benefit of the Dominion.” There was ample scope for negotiation, for New Zealand had been a most profitable market for the goods from various countries, including Canada. The balance of trade in the last few months may have been in favour of this country, but it must have been the first time for very many years. In 1940 the adverse balance was £1,160,000, and in the preceding year it was £3.427,000, and on occasions it mid been even greater than that. It is not suggested that in these matters a balance can be achieved, and New Zealanders prefer that as far. as is possible the direction of trade should be with other British units, but with both Australia and Canada we could, with very good reason, have asked for extended facilities for the marketing of our products. The Canadian agreement is now to continue till such time as one party gives notice of its intention to terminate it. I his clearly is not the time for reviewing trade arrangements, but when conditions return to normal and New Zealand will be desirous of extending the markets for its exports, the trade with the big sister Dominion is one of the first that should be brought under review. The New Zealand market is of value to Canadian industry, the imports of Canadian goods on occasion approaching the £5,000,000 mark m a year, or more than four times the value of the goods imported by Canada from this country in the same period. A greater degree of reciprocity could be asked lot when the time comes for reviewing the trade relationships between the two countries.