CANADA TRADE AGREEMENT

Evening Star, Issue 22192, 21 November 1935, Page 14

CANADA TRADE AGREEMENT

EXTENSION TO NEXT YEAR DUTIES OS MOTOR VEHICLES MODIFIED [Per United Press Association.] WELLINGTON, November 21. The following statement was issued by Mr Coates to-day:— “ By mutual agreement between the Governments of Canada and New Zealand it has been decided that the existing trade agreement between the two countries is to be extended till July 31, 1936, and that the duties on Canadian motor vehicles are to be modified on and from May 1, 1936. The reason for extending the agreement for a further period is to permit of arrangements being made for a new agreement. The Canadian Government has promised to meet our request that negotiations to that end should take place in the near future. “ As the result of the agreement recently concluded between Canada and the United States, it would appear that conditions will now* be more favourable than hitherto for the conclusion of an agreement on a more satisfactory basis between New Zealand and Canada. In 1931 the exports from New Zealand to Canada amounted l to £222,942; the imports into New Zealand from Canada to £1.224,569. In 1932 the exports were £208,315 and the imports £1,007,096; in 1933 the exports were £433,861 and the imports £1,012,213; and in 1934 the exports were £554,931 and the imports £1,677,7641 “ A modification of the duties in respect of Canadian motor vehicles has been found necessary as the result of amendments made in the tariff last year, particularly in so far as related to unassembled vehicles, and having regard to tho competitive position on this market between the United Kingdom, Canada, and foreign countries. It is provided, however, that the new ■duties should not operate until May 1 •next. “The rates for unassembled, or completely knocked down, vehicles containing not less than 75 per cent. Empire content is 10 per cent, ad valorem. “ Containing 1 not less that 65 per cent. Empire content, 12J per cent, ad valorem. “ Vehicles containing less than 65 per cent. Empire content will be subject to a duty at the rate of 50 per cent', ad valorem. “ Completely set up. vehicles containing not less than 75 per cent. Empire content will be subject to 25 per cent, ad valorem, and if less than 75 per cent. Empire content, to 60 per cent, ad valorem. “ In all cases a surtax of nine-for-tieths of the duty otherwise payable is also chargeable.” An Order in Council giving effect to the extension and modification of the agreement will_ be published in the ‘ Gazette ’ to-night.