INTER-DOMINION TRADE

Evening Star, Issue 20413, 19 February 1930, Page 13

INTER-DOMINION TRADE

NEW ZEALAND REPRISALS AGAINST AUSTRALIA UNION SEEKS END OF TRADE WAR Following on bis recent comment on tile prohibitive duty placed by New Zealand on Australian-made macaroni and vermicelli, Mr F. Itiley, secretary of the Manufacturing Grocers’ Union, announced (says the Melbourne ‘ Age ' —January Jl) that ho considered it time that representatives of the Governments of Australia and New Zealand were brought together to consider the matter, and to put an end to the tariff war which was going on between the sister dominions to the advantage of non-British countries. With tins end‘ in view he had written let ters to the two Governments suggesting a conferenco being held. In Ids letter .sent yesterday to Mr Fordo, .M. I’., Acting Minister of Customs for Australia, Mr Kile" pointed out that within the past two years the trade in macaroni products with New Zealand and Victoria had fallen by more than 100,0001 b, which was more than 00 per cent, of the previous annual trade from Victoria in tho foodstuff. Tho decrease in trade was duo to tho tariff imposed by New Zealand against Australian products The duty on macaroni was 00 per cent, on Australian, ‘JO per cent, on foreign, and duty free for Canadian and British. At the present rate ol affairs trade with Now Zealand and Victoria in macaroni would cease altogether. Before tho rapid decrease ol trade the Australian trade was actually increasing, and Australian manufacturers wore looking forward to good markets. The falling oil in the trade had naturally been felt by workers in the industry. The union believed that tho preference shown by New Zealand to other countries against Australia was duo to trade reprisals by New Zealand against an attitude of the Commonwealth towards certain Non - Zealand goods. The union earnestly requested a conference between representatives of the two countries to discuss reciprocity in trade. It would surely be possible to come to an agreement that would be to the mutual benefit of the two dominions without resorting to actions of refusals, as was indicated in the present attitude of tho New Zealand Government.

Silimar letters urging the advisability of such a conference have been sent to the Minister of Customs in New Zealand, and Mr Holland, M.P., leader of the New Zealand Parliamentary Labour Party. As an indication of how Victoria was suffering loss of trade through the tariff war. Mr Riley added, ho had received a copy of a letter from a firm of New Zealand importers to a Victorian manufacturing firm cancelling an order for macaroni. The New Zealand (inn stated that when it ordered the goods it thought that tho duly was to be reduced on all lines, but such bad not been Ihe ease. 'The duty was reduced under the general tariff, but Australian lines wore classed under “ n special reciprocal tariff,” which was not affected by the change, and the duty remained at 30 per cent. In such circumstances the order would have to be cancelled.