NEED FOR TWO-WAY TRADE

Dominion, Volume 38, Issue 2, 27 September 1944, Page 6

NEED FOR TWO-WAY TRADE

Australia And New Zealand DOMINION’S DISADVANTAGE STRESSED “There was a keen interest throughout Australia iu New Zealand’s interest in the Commonwealth’s likely exports after the war, but the response was somewhat less enthusiastic when it came to lines New Zealand wants to sell to Australia in return,” said Mr. A. O. Heany, secretary of theOssociated Chambers of Commerce of Zealand, who returned to Wellington yesterday after a visit to Australia ou behalf of his organization. “Official circles and former importers of New Zealand goods understand the essential two-way nature of trade, the former because they sec the Canberra Pact as a businesslike document applying to trade matters as well as to measures of defence and similar common policy, and the latter because thev know the quality of New Zealand exports and the market there undoubtedly is for quantities of those exports in Australia. Generally speaking, however, the Australian manufacturer, while wanting our tariffs reduced even further, is not markedly receptive when one asks what goods Australia is prepared to tyjie iu exchange. New Zealand’s case had to be vigorously advanced. "The fact that New Zealand has had a steadily mounting adverse balance of trade with Australia is considered of no great moment by many there, since such balance is subject to international settlement. That is true, of course. But the annual balances of trade with New Zealand over the years 1932 to 1939 totalled £23,000,000 in favour of Australia. What actually happens over these balances? The point of settlement is London. There Australia claims the requisite exchange from the export credits-created by New Zealand’s produce. To the extent that New Zealand’s exchange in London is so reduced, to that extent is New Zealand’s capacity to purchase British exports reduced. As Australia is not required to take out in British exports the credits she takes over from New Zealand in settlement—she may even acquire foreign credits —then Britain is deprived of exports to both Australia and New Zealand. That is a serious matter for New Zealand, in view of the fact that Britain provides us with practically our sole market. "Even under New Zealand’s,- pre-war tariffs as applying to Australia, the Commonwealth did very well, as the following particulars of her exports to the Dornin.ion for 1938-39 show:—Foodstuffs, £1,300,000; apparel (textile), £400,000. coal, £140,000; metals and machinery, £2,000.000; timber, etc., £500,000; drugs’ and chemicals. £380,000; paper and sta tionery, £320.000; total (with various other items), £6,600,000. “New Zealand exports to Australia for 1938-39: Onions, £70,000; cattle hides, £112,000; wool, £530,000; peas. £04,000; sheep, £33,000 ;_fish, £155,000; grass and clover seeds, £71,000; timber, £133,000 ; dairying machinery, £35,000. gold. £646,000; total (with other items). £2,256,000. Balance of trade in favour of Australia for 1938-39, £4,163,000.

“These figures show two things: (a) That Australia can afford to give concessions’ to us without requiring a quid pro as a preliminary to any bargaining, in order to reduce to some extent the balance of trade against us, and (b) that Australia has to be prepared to ’ accept our primary products, even though she may produce similar lines, since that is all we have to offer in exchange. Both countries produce cheese and honey, for instance, but ours are different from theirs, and the import trade there has proven there is a market for them. Both countries grow apples, but Australia, could buy our Delicious and Granny Smith, which have better keeping qualities than theirs. Both countries used to freely exchangeilfresh vegetables, and the stalemate in potatoes and citrus fruits is, of course, an old story which it is to be hoped will be soon ended.” Mr. Heany said New Zealand had reason to be grateful to Australia for willing help extended to the Dominion with war-time supplies even at considerable inconvenience to the Commonwealth. The ability for mutual aid that, had emerged under war conditions was a fine'development, and a happy augury for future trade relationships between the two countries. He wished to express his appreciation of the assistance given him in his visit by both the New Zealand and Commonwealth Governments.