The Evening Star SATURDAY, JULY 29, 1922. THE TARIFF AGREEMENT.

Evening Star, Issue 18033, 29 July 1922, Page 4

The Evening Star SATURDAY, JULY 29, 1922. THE TARIFF AGREEMENT.

Australia’s tariff revision came into effect on March 25, 1920. The .changes in Customs deties mad© thereby v/ere a distinct advance along the Protectionist path tho I Commonwealth has trodden since Federation, and in many cases trended from the revenue to the prohibitive class., Although preference was granted l to Great Britain, Home manufacturers in many instances complained bitterly that any ortho British dominions should) impose so high a trade barrier against their goods. Under that tariff Now Zealand) fared 1 just as badly as any other country in the world, apy goods exported' from hero coming under the general tariff, the highest of the three classes. For nearly two years New Zealand endured this disability, until with the revision of our own tariff the opportunity came to retaliate, and Australia was specifically excluded from tlio preference which this country extends to all the British Empire and placed among the least-favored nations. Tb? intention was not to make this exclusion permanent, but to use it as a lever for securing better treatment from Australia,. This expectation has been abundantly realised. It is indeed a surprise to find such a highly Protectionist country ae Australia going so far in tho direction of Freetrade as her Minister of Customs has offered to do in the case of New Zealand. Mr Rodgers’s first offer to Mr Downie Stewart was to remove this dominion from the outer to the inner position—from tho general to the British preferential tariff—if New Zealand would da, tho same for Australia. But as the Australian tariff is more highly Protectionist than our own, the 'advantage would still have remained with tho Australian exporter, and Mr Stewart went, for something better and got it. The upshot of the agreement, which the Parliaments of both countries have nbw to consider, is that so far as both countries are concerned each goes from the highest to the lowest class of duty on the other’s tariff; and, what is still more important, a special list comprising 130 items has been prepared whereby ong country or tho other (in some cases both together) admits the other’s goods free or at lower duties than are charged even under the prelerential tariff of either. This is real trade reciprocity. As we have stated, the surprise is that Australia is ready to make such an exception, with us in tho matter of her fixed! fiscal policy. Her duties have been fixed high to foster her local industries, but these have achieved such an output that many of them are now seeking outside markets. Mr Rodgers, lias.

explained big concessions to the Federal House by saying that ae balance of trade was overwhelmingly in favor of Australia, she would reap a substantial benefit from the agreement. This big surplus of Australian exports to New Zealand compared with our .exports to Australia may have 'been true in the past, ■ but the reciprocity will not he regarded as a success in the dominion unless it helps considerably to reduce the balance of trade against us. And a scrutiny of the 130 items, and especially of the explanations Mr Downio Stewart has given in cases where he did not concede all that the Commonwealth Minister sought, shows that ho lias been fully alive to' the requirements of New Zealand manufacturing industries in the way of protection. Ho appears to have secured hatter tonne also for some of our manufacturers to compete in Australia; for instance, New Zealand makers of agricultural implements are now hopeful of the possible re-entry of New Zealand ploughs Into Australia. As to ra\v products, there appear to he some disappointments. There as no better hope of an outlet for New Zealand oats in Australia, though Australian onions will

only have to contend with a duty of £1 a ton instead of £6 per ton ns heretofore when brought over hero. Mr Rodgers Inis expressed disappointment over New Zealand’s attitude in regard to dried fruits. At present these are admitted free into New Zealand, whatever the country of origin. Apparently the only change is that Australian fruit now has liability to a “ suspended duty” of 2d per lb removed. Presumably what Mr Rodgers wanted in the interests of the big Miklura dried fruit industry was preferential treatment aa compared with tho rival product from Smyrna, on tho prices of which those of Miklura aro based. However, the Australian vignerons have at last had removed "their long-standing grievance in respect of favored South African competition, and probably their chief regarding ns now is as to how long tho importation of wines from either country by New Zealand will legally continue. As to timber, probably both New Zealand sawmilkrs and merchants will be pleased with the proposals for reciprocal free trade, for wo badly need the Australians’ hardwoods, .and they our softwoods. Among other articles placed on the Australian free list are fish and oysters,, and this alteration should tend to the benefit particularly of Bluff and Stewart Island.