SCOPE FOR TRADING

Hawke's Bay Tribune, Volume XXI, Issue 307, 11 December 1931, Page 6

SCOPE FOR TRADING

RELIACE ON BRITAIN. The necessity for New Zealand to widen the field of its exports in order that it should not have to rely solely upon Great Britain to take its products, was emphasised by the Minister of Finance, Hon. W. Downie Stewart, in speaking at the official dinner given last evening in Wellington by the Consul for Belgium, M. Armand Nihotte, to signalise the signing of the trade treaty between the Dominion and Belgium. “Among the many important problems that are at present facing the people of New Zealand, none is more important than the development of export markets for our goods,” Mr Stewart said. “Upon this the prosperity of New Zealand and its people really depends. It is generally admitted that in the meantime at least the great bulk of our export trade must consist of primary products and the question arises . as to how the markets for these goods can be extended both geographically and quantitively. “Owing to the political and economic changes that have taken place in recent years in some of the British Dominions and foreign countries to which New Zealand used to send its products, this country is becoming more and more dependent upon one market, namely, ; the United Kingdom. Our trade with Australia has decreased rapidly in recent years. In 1927 this trade was just under £3,250,000. In 1929 it had dropped to just over £2,000,000, and last vear it had decreased further to about £1,328,000. , DANGEROUS CONCENTRATION. “In the case of Canada it is < that the question of our future trade relations is still under discussion, but whatever is done it is, I think, clear that so far as can be foreseen it is very unlikely that our export trade with that Dominion will for many years reach the figure for 1929, namely, £3,353,000, or even that for 1930, namely, £2,539,000. Even allowing for the re- . duction in the prices of our products last year it is obvious that our markets outside the United Kingdom are gradually slipping away. “I recognise, of course, that it is most desirable that trade with the United Kingdom should be increased in every possible way, but there has, I think, been too great a tendency espec- . ially in recent years to view without ■ concern the concentration of our export trade upon Great Britain. Now it must be quite obvious that there are I limits to the consumptive or receptive capacity of the Old Country, that all primary producing countries look to I England as a possible destination for their goods, and that therefore it behoves us, while we can, to take every possible advantage of any market that is available to us. So that a better conception can be formed of the extent of our dependence upon the London market I have taken out some figures dealing with the matter. “According to the latest figures available, the percentages of the total ex- i port trade in the principal primary products sent to the United Kingdom by New Zealand, Canada, Australia, and South Africa are as under:— Per cent. New Zealand 81.6 Canada 60.9 Australia 45.6 South Africa 46.4 EXPORTS TO THE CONTINENT. “I am, of course, aware that with respect to certain products there are special reasons why they are, or are not, exported to the United Kingdom, but 1 think that one conclusion at least which can be drawn from these figures is that we are too dependent upon the English market for our prosperity.” “There is another set of figures that is of considerable interest in connection with this matter, namely, the percentage of the total direct exports of the British Dominions which arc shipped to Continental Europe. These are: — Per cent. New Zealand 3.2 Australia 20.6 Canada IL3 South Africa 13.0 (at least) “These figures at least show that the products of the other Dominions have a far greater hold upon the European markets than have New Zealand goods. “Tho question then arises as to how the position is to be improved. As you are aware, the Government has already taken some initial steps with a view to tho encouragement of direct trade with tho Dutch East Indies and other Eastern markets. I recognise that little can be done without tho cooperation of exporters and exporting organisations, but at the niqment I am concerned rather with the steps which can be taken by the Government to assist traders in their work. TARIFF BARRIERS. “It is a matter of common knowledge that in recent years there hud been an increasing tendency in most countries to raise tariff barriers highei and higher. Not only so, but many countries are adopting maximum and minimum tariffs, and concessions to the extent of the minimum tariff are granted to reciprocating countries. It no such concessions are obtainable the policy is that the maximum tariff should be applied to the products of that country. Must not New Zealand adapt its policy to' meet these conditions! Al'hough retaliation may be necessary in certain cases with a view to ultimate negotiation, I think that, as a general rule, negotiation is the best means to adopt when dealing with other countries. To pursue this policy successfully some inducement must be given in order to obtain corresponding advantages. . , , ._ “When the changes m the tariff ou foreign goods wore made in 1930 it was understood that these duties might be reduced, if satisfactory tariff conces sions could be obtained from other countries. It is, I think, generally conceded that some of the rates on foreign goods are now too high, especially in view of the present economic and exchange positions in the Dominion. J. ho matter could, of course, be rectified simply bv reducing tho rates of duty, i but in view of the tariff barriers abroad | to which I have referred and the desir • ability of reducing them if possible in the interests of our export trade 1 nm I of the opinion th: t ii is belle." to re

dues them by negotiating agreement’ with other countries by which reciprocal concessions may be obtained. 1 “If such an agreement were made I with one country, other countries, auxi • ous to develop their export trade, 1 would no doubt seek similar advantages and would afford New Zealani 1 the best opportunity of gaining the ex ' tension of export markets through the lowering of tariff barriers.’’