INTRA-EMPIRE TRADE

Evening Post, Volume CXVIII, Issue 9, 11 July 1934, Page 6

INTRA-EMPIRE TRADE

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LIMITS OR TARIFFS

'This brings me to one of the.most important matters .with Awhich I".propose to deal—the ■encouragement ' ; of trade within the Empire," said ' the Minister. "It is the. settled^poliey b£ the Government tp: ■pursue, every .practicable avenuo to increase....trade between Neiy Zealand and 'the dther uiiits of. the. Empire, especially ii he i United Kingdom. During; the>st:thirty years this "Dominion -has . accordedysubstantial tariff preference to the?goods of Empire countries. Forra.'lon^ period this preference was, on a ;syoluntary basis so far as New. Zealandr.was concerned, and was extended to| all units of the Empire. Now, however, the practice is for prefereu'ee 'to be arranged by means of. definite; .trade agreements between ..the respective units of the Empire. In 1922 New Zealand made a trade treaty-.with Australia which was replaced last', year by a new agreement. In^l9S2van;agreement was made with Canada^which provides for tariff concessions by both countries. In the same year, as members are aware, an agreement was entered into, at Ottawa under which, for the first time, a definite tariff' arrangement was made with TJnited: Kingdom, some .of the provisions of which extend to the non-self-governing' colonies and protectorates. 7 'There1 is also a reciprocal- agreement" between ' . his Dominion and the Union of "South Africa. Other Dominions have-adopted to a greater or lesser extent a similar policy. . - . _ • ... HOME INTERESTS. | i "In the light of ~the existing cir- ! cumstances it would appear that this Dominion's policy should 'continue to I be-moulded along these lines. There are, of course, limits to the extent to which Empire trade can be fostered by means of tariff preference's. The'interests of our own people, 'especially; _ ose of the primary and J.see.pndary industries, must be considered. 'At the present time New Zealand extends such preferences on a very wide range of goods. Generally speaking, and except for certain important^ revenue items, it may bo said that where preference is n granted the goods concerned are of a class not commercially' produced within the United Kingdom ,or -are essential raw materials, required by the industries of New Zealand which it is desirable should be available at the lowest possible cost It is obvious .that in many cases, if duties were imposed on such materials or.if the duty.thereon were increased, it might "be necessary to grant the local industries increased protection to enable them to compete with imported finished.articles.

"There is another side—and a veryimportant one—to these agreements— viz., the extension' of markets for .our products in Empire countries. The advantages wo received under the Ottawa Agreement are too well known-to require recapitulation, and I do , not.; at present propose'to go into details. ■ The agreements with Canada and Australia

have cm the whole.proved satisfactory, and they have provided ineand fo:r : the disposal of our products in those'couutries. There is one point in connection with the -Australian" agree'meriti-KS which attention should be directed:-Many ■witnesses who appeared before.'.;the Tariff Cominissidn pointed-: out;, that,-,! with respect- to certain ; goods-;-exported frdnv New Zealand to. ■Australia;, arid not specifically mentioned jit ithe: agreement, higher rates-: -of -.duty: 'were charged than- those,: on", ■ similar goods imported from Australia into'%ew, Zealand. /Provision/is; however, --made iii article 9 of the" agreement-Tinder which either country can request the' other to admit any lines, of goods at the rate applicable in the country.'.of;'export:'lf the. request is not complied .with within three months, the country making'the request can impose on the goods of the other country a rate.of duty, not greater than that charged in such countrjj under its British preferential- tariffs ■; f'lt :<? the intention pf.the Govern^ ment to take advantage of ; every oppor-' tuiiity of extending-the policy outliael above by making trade .; -agreements with other self-governing. ~Dominions. Certain preliminary negotiations have already taken place but it is n<jt possible at present" to give' details of these:" ■."•-■ •'..•.-■■ .'-' : ; ;