INTERNATIONAL TRADE

Evening Star, Issue 21093, 4 May 1932, Page 10

INTERNATIONAL TRADE

CHECKED BY TARIFFS AS NEVER . BEFORE ANOTHER PHASE OF DEPRESSION [From Od* P«tiAiranTißT Reporter.] WELLINGTON, May 3. The effect of trade treaties on the flow of international trade was the subjcct of some interesting observations by the Hon. Downio Stewart in the House to-dav. After referring to the difficulties of negotiating the trade agreement between', New Zealand and Canada on account of the comparatively small production of items needed by Canada, Mr Stewart mentioned as a point ot inter-est-that Canada was now one ot the first five trading nations of the world. Countries taking precedence, he said, were the United Kingdom, the United States, France, and Germany. Moreover, Canada’s interests in trade were rapidly growing. During recent years manufacture had taken precedence over agriculture in the net value of production, and the dominion had become the second most important manufactui mg country in the Empire, and sent manufactured goods to' practically every country in the w r orld. As external trade was largely the life blood of New Zealand, the Minister continued, th epossibilities of opening up trade with other countries was of vital importance. The importance of the matter arose all the more clearly from what had taken place since the depression struck New ZeaZland, because, while efforts had been made by central banks and others to devise emergency measures to deal with currency, no systematic endeavour had been made to prevent the collapse of international trade. On the other hand, the depression had nationalism in its most acute form. There had been a perfect storm of tariffs all over the world since the depression became acute. While New Zealand believed it a proper policy to protect industries that were suitable to the dominion, the tendency all over the world during the last two vears had been to cheek the flow of trade to a degree the world had never seen before. It was stated by competent authorities that the collapse of international trade during the last two years had no parallel in the annals of modern business. In his opinion that had accentuated the depression, and the more the flow of international trade was retarded, the more would living standards he affected. Therefore, any steps that could be taken, without prejudice to local industry or local producers, to loosen trade were of vital importance.