TRADE WITH CANADA

Evening Post, Volume LXXXIX, Issue 56, 8 March 1915, Page 8

TRADE WITH CANADA

♦ EXTRA. DUTIES ON OUR PRODUCE (BT TILBGRAPH— PRESS 4SSOCMTION.) AUCKLAND, This Day.Tbe action of the Canadian Government in imposing extra, duties, on New Zealand produce imported into Canada is likely to have a restrictive effect upon tho volume of trade done between tho two Dominions. The matter was referred to by Mr. J. G. Harknese, of Wellington, manager and secretary of tho National Dairy Association, who returned by the Niagara from. Vancouver a.nd San Francisco, after a short business trip. The Canadian Government has recently revised the tariff, and ha 6 decided to put a surcharge on New Zea- - land produce imported into Canada to tho extent of 5 per cent, ad valorem. Under the preferential agreement with Canada, said Mr. Harknees, there was a fixed duty on Now Zealand butter of 3 > cents, equal to l^d por lb. As New Zealand butter was to-day worth probably 30 cents c.i.f., or Is 3d per lb, the imposition of a new ad 'valorem duty meant that the total duty on butter was now 4j cents per lb — an. increase of I? cents. "The duty is going to bo a big handicap, especially to New Zealand butter," said Mr. Harkness, "and will in like measure affect other exports from New Zealand to Canada." . The imposition of the new tariff. Mr. Harkness added, meant that the Canadian producer was given additional protection. New Zealand producers might have to reduce the price of their butter. "From enquiries made in various directions," Mr. Harkness continvied, "I am inclined to the opinion that California will not be a good market for New Zealand butter. The possibilities in connection with tho State are very great, and if the farmers and the settlers turn their attention to dairying they will probably be able to produce sufficient for their own requirements for some years to come. Vancouver, in my opinion, is a different proposition. New Zealand butter has a first-claes reputation there, and there should be a consistent demand for a certain quantity which nnfortanately the new duty may to a considerable extent restrict. The only possible way that any redress could be obtained in regard to the duty would be by the New Zealand Government making representations to Canada." Mr. Harkness concluded by remarking that he thought the new ad valorem duty had been added to the fixed duties to meet expenditure in connection with the war; possibly it would not be permanent.