OTTAWA TERMS

Evening Post, Volume CXVII, Issue 55, 6 March 1934, Page 13

OTTAWA TERMS

RELATION TO TARIFFS

A POLICY STATEMENT

In a full and comprehensive Statement in defence of its policy, the "New ...-Zealand Producers' and United Kingdom Manufacturers' Keciprocal Trade '.deals with the privileges,;and obligations under the Ottawa Agreement.-: It maintains that for'the privilege of free entry of' Ne- Zealand exports, to Great Britain, plus certain preferential treatment under schedule ■B, given ■-'■ to s\ew Zealand goods, Kew Zealand agrees to remove all revenue tariffs' from- 'her tariff schedule. '.These 'are referred -to in Article 6 and Article 11. In Article 7 it claims this to be the most imortant clause in the Agreement from the British point, of view, for in it no tariff shall .be afforded. against British imports .iinless^ it' can be shown that similar goods ate being made in New Zealand with reasonable prospects of success. When, however, the latter condition does not exist, then Clause 8, a clause which it claims is looked upon by the New Zealand manufacturers as the : most important clause in the Agreement, is to be met by the Tariff Commission inquiry, -which shall apply the necessary protection to local industries. It points out that in this clause Britain acknowledges the necessity of protecting the New Zealand/industries -provided that those New Zealand industries are being . carried out withT"rea£onable prospects of success, but does not permit that the tariff shall be of sufficient height to debar Britain from becoming a domestic competitor in the New Zealand market. The federation relies upon the first clause of the Ottawa Agreement for an unrestricted entry for New Zealand exports into the British market, but recognises the qualifications of this clause, as mentioned in schedule A. This refers to butter and other milk products. In schedule A it points out, Britain promises definitely not to review the treaty for a period- of three years, and this period will expire on November 15, 1935. After that date, however, the clause says, if it is in the interests of the British producer to do so, Britain may apply a quota or a tariff on New Zealand exports. The main object of the federation's policy is,-therefore,,to see-that New Zealand fully carries out all her obligations under the Ottawa Agreement, thus giving the British manufacturer all the privileges that he is justly entitled to. They Relieve the good will of the British manufacturer towards New Zealand will safeguard for all time the privileges New Zealand now enjoys under the Ottawa Agreement. The federation acknowledges the great service rendered to New Zealand by its delegates ai Ottawa, and maintains that this would be more freely, acknowledged by the commercial community if the importance of it was fully understood by them. It seeks the co-operation of the New Zealand maufactiirers to assist it in the removal of the tariffs on all'goods that are referred to by Article 7. . It challenges the opinion held in many quarters therefore^ .that Ne\y , Zealand's action in regard to tariff reductions will not in any way-influence the British Government in withholding a quota on New Zealand exports. -It. riiaintains that such an opinion is a denial, of the,'existence of 'schedule A, and would turn the contract into a farce by deleting its sole penalty-clause. ■ In clause 8, it maintains, Britain has fairly acknowledged the importance of many New Zealand industries and believes that, they are entitled to protection. The federation fully recognises the great task of the Tariff Commission, and, knowing the full responsibility that rests upon it, believes that the Commission is carrying out its arduous duties as speedily as p055ib15—^.^..,^.,..,.,„.- .. -..._-.,.. It challenges the suggestion recently made in the Press that if the quota is the"'set 'pblicy of the Government, then there is no use fighting. It refuses to believe that either Great Britain or New Zealand would so far forget its dignity or duty as.Vto permit the Ottawa Agreement to become a mere "scrap of paper," and the fine work carried out by the delegates of both countries \ at Ottawa to be thrown in the waste-paper basket. ■ r ; "-. It challenges the suggestion that any Government which is endeavouring to raise prices deserves the* wholehearted support Of-the community, as it does not believe that this can be' done either by a quota or tariff. It believes it to be infinitely more important to raise the standard of living in both countries by giving" the purchasing power of the people its full Value, and not have it devalued, by the operation of exchange quotas or tariffs. . The Ottawa Agreement, in the opinion of the federation, is an instrument to ■which, all present tariffs must conform, and should lie a guide to the future commercial relationship : between New Zealand and Great Britain, and the/federation believes -that, if rgiven ah .opportunity it will bring: about a better'understanding between-/the and this Dominion,, without in any way impairing the economic development of the industries in either country.