THE TRADE TREATY

Evening Star, Issue 21093, 4 May 1932, Page 1

THE TRADE TREATY

NEW ZEALAHD-CAHADA AGREEMENT RATIFIED [Pee United Press Association.] T WELLINGTON, Mav 3. rx In moving the second reading of the Irade Agreement (New Zealand and Canada) Ratification mil, the Minister oJ Customs (Hon. W. Downie Stewart) said the terms ot the agreement had been received with satisfaction throughout New Zealand. He proceeded to enlarge upon international trade relations and other matters (reported under separate captions). The Leader of the Opposition (Mr H. E. Holland) said he could not see that Now Zealand would either gain or lose to any appreciable extent as the result of the arrangements that had been made. The butter industry was just as natural to Canada as it was to New Zealand, and was bound to be fully developed during the next tew years. " 1 cannot see how the Minister can hope to get back what is a passing phase ol international trade,” Mr Holland said, after giving figures dealing with Canada’s export trade in dairy produce and New Zealand’s butter trade with Canada. “It is quite clear that the butter trade with Canada was not a permanent relationship,’’ continued Mi Holland. What was needed was no tariffs but definite trading agreements. By this he meant an arrangement whereby New* Zealand would have a definite understanding as to the quantity of exportable goods she would send to one country and the quantity of importable goods she would take in return. A haphazard arrangement based on tariffs should be removed. Up to the present New Zealand had been a heavy loser in trading with Canada. She should say to Canada that she was willing to trade, but it would have to he on tho basis of equality. Great Britain was New Zealand’s best customer and New Zealand should strive to make trading agreements with the Old Country. The Prime Minister (Right Hon. G. W. Forbes) said that Mr Stewart was deserving of the greatest credit for the satisfactory treaty lie had been able to negotiate. . It might not bo possible to recapture the butter market New Zealand had previously enjoyed in Canada, but it was hoped to be able to regain a modicum ot it. It was possible in New Zealand to produce all the year round, but with the severe winter in Canada, all-the-year-round production was impossible. Something might be done to increase New Zealand’s export of frozen beef to Canada. It might also be possible to build up a market for sausage casings. 'The Canadian representative at Honolulu had expressed the opinion that there were possibilities of an increased trade in wool. There 1 ’ss, a population ol 10.000,000 in Canada'. Mr Fori es stated that it behoved New Zealand people to push their goods ahd take what advantage they could of the arrangements made.

Mr M. J. Savage (Auckland West) said that to him tho agreement appeared to be neither good nor bad. If the Government desired an increase m international trade it should begin hy increasing tbe purchasing power of the people. New Zealand would have to be in a position to go to other countries and say she was willing to take mure of their products m exchange for hex own. World trade depended on an exchange of goods and services for goods and sei vices. He commended the agreement in so far as it would transter our trade with foreign countries to the sister dominion. Mr H. Atmore (Nelson) concurred in this view, and remarked that the treaty would also remove tho strained feelings that had existed between New Zealand and Canada. Mr A. Harris (Waitcmata) said that what New Zealand needed at the present time was commercial travellers. Trade. agreements were of no use unless they were followed up by representation.

Mr F. Laugstone (Waimarino) expressed the opinion that Canada appeared ’to have got the better of the bargain. Mr H. M. Rushworth (Bay of Islands) said it was unthinkable that tho delegates to the Ottawa Conference should meet in a state of war, and the elimination ol that condition alone justified the treaty. Mr A. J. Murdoch (Marsden) said the chief merit ol the treaty was the good spirit it had engendered. He added that one of the first problems that would have to be tackled at the Ottawa Conference was the placing of the various Empire exchanges on one basis.

In reply, Mr Stewart said that Mr Laugstone had suggested that, in some wav or other. Canada had got the better of the bargain. The Minister said ho had never known any treaty to have been ratified by any Parliament without someone suggesting that the other party h;id got. the better of tbe negotiations. It seemed to be part of the regular procedure to ignore the fact that the negotiators endeavoured to arrange a fair deal and to take each other’s requirements into consideration. The Minister mentioned that ho had been advised that it had taken the Minister of Customs (Mr Stevens) eight hours to get tho Bill read a second time in the Canadian Parliament. Replying to Mr Holland. Mr Stewart said that although New Zealand’s exports to Canada might not show any spectacular increase the agreement would at least bring back to the Empire a trade that had been drifting to foreign countries. He further stated that the expansion of New Zealand's trade with Canada must very largely depend on how far tho manufacturers availed themselves of the opportunity provided by tho treaty to open up and develop markets. The Minister agreed with Mr Rushworth that there was nothing so upsetting to trade as fluctuations in the exchango rates. He pointed out that he had previously said ho hoped that price levels and currency would bo one of the questions dealt with at Ottawa. The Bill was road a second time, put through its remaining stages, and passed.