TRADE WITH AUSTRALIA

Evening Post, Volume CXXV, Issue 28, 3 February 1938, Page 10

TRADE WITH AUSTRALIA

AN ADVERSE BALANCE

RATIO OF FOUR TO ONE

The apparent balance of trade between Australia and New Zealand dur-' ing the past twenty years has been two to one in favour of the Commonwealth, but owing to a flood of imports in the past year the ratio is now almost four to one (remarks the "New Zealand, Herald"). For every £1 worth of goods .sold to Australia in the first eleven months -of last year the Dominion purchased 74s worth,in return. On this basis there are strong grounds x'or a readjustment of trade between the' two countries. These figures are interesting in view of the prospective trade treaty which is now being considered by the Federal Cabinet. On the return of the. Australian Minister of Trade and Customs after parleys with the New Zealand Government it was reported that higher duties were expected to be applied on Australian clothing, machinery, textiles, hats, electrical and radio goods,, boots and |hoes, and metal manufactures. BIG INCREASE IN IMPORTS. Imports from Australia have grown at an alarming rate in the past year, to the discomfort of local manufacturers. Although figures for the full year are not yet available, imports for the eleven months at £6,171,024 are already well in excess of the full total for 1936 of "*£ 5,220,336. The apparent balance of trade at the end of November was £4,502,051 to the advantage of Australia, against £3,376,861 for the twelve months of 1936. ■•■:■ _ A comparison of exports to and imports from Australia in the past six years, with the balance of trade, is as follows: —

A STUMBLING BLOCK.

The potato-oranges contretemps has retarded measures tor increased trade reciprocity for many, years. . The fact that Australia has. steadily expanded its exports to New Zealand since 1930, in spite of. the loss of a fruit trade worth £200,000 a year, is due to the rapid growth of secondary industries. The remarkable increase in imports of manufactured goods from Australia is shown in the following table, which compares figures for the nine months of 1937 with a similar period in 1936:—

Of the pntire list of imports, only five items showed a fall. They were:— Dairy machinery, 34 per cent.;- sugar, &6; boots and shoes, 12; artificers tools, 9; fencing wire, 4. ' Australia is by far the Dominion's worst customer, the nearest approach to the adverse ■ balance, of over £4 000 000 being Canada, with £2 582,857. Rapid expansion in Australian secondary industries is mainly responsible, for in iron and steel goods, apparel, and glassware the Commonwealth has made inroads into Jhe United Kingdom trade with New Zealand. __________

Exports Imports Balance £000 N.Z. £000 N.Z. £000 N.Z. 1932 .... 1,445* 2,571 —1,126> 1933 .... 1,393 2,808 —1,415^ 1934 .... 1,383 3,532 —1,649 1935 .... 1,782 4,295 : —2,513 1936 .... 1,843 5,220 —3,377: •1937 .... 1,669 G.171 —4,502 ♦Eleven months only.

\ ' ' 1937. '. ,. 1936. Mse £ £ p.c. Bolts and nuts ...... 27,106 7,125 .280 Hosiery 36,530 10,951 234 Leather manfts 11,829 5,071 133 DraDerv 8,409 3,880 US Apparel ...77,154 40,982 88 Iron and steel 320,428 237,092 05 Cotton goods 6,786 4,270 59 Hardware ......... 69,934 49,343 42 Electrical appliances 147,352 _, 107,0241 38 Tobacco v 83,8<io bJ.obU m