FRIDAY, APRIL 28, 1922. TRADE RECIPROCITY WITH AUSTRALIA.

Hawera & Normanby Star, Volume XLII, Issue XLII, 28 April 1922, Page 4

FRIDAY, APRIL 28, 1922. TRADE RECIPROCITY WITH AUSTRALIA.

The terms of the agreement mad* between the Hon. Bownie Stewart, Minister of Customs, and the Australian Minister for reciprocity in trade between New Zealand and Australia will not be known until they are presented to the respective Parliaments, about the middle of the year. The New Zealand tariff rates provide for preference, not only to Great Britain, but to all the Dominions, but Australia gives preference to Great Britain only and treats the Dominions as foreign countries for customs purposes. For a long time past New Zealand has suffered considerably from this arrangement, but a few months ago our Government retaliated, and Australia, has since been as keen to afrita at a better arrangement as otlf people. It was for7'he purpose ot reaching an agreement that Mr. Downie Stewart went to Melbourne, and apparently Ms mission has been quite successful In 1918 New Zealand sent produce an& Manufactures valued at £2-/302-,436" to Australia, and in 1919-20 the value of our exports to the same ]place had only mereased slightly to £2,513,934. Australia's exports to New Zealand in 1913 were valued at £2,306,990, in ISI9-20 ot £7,743,744, and in 19i50-21 at £7,780,763. While New Zealand has not materially increased her exports to Australia, the latter country has found a rapidly growing market in New Zealand for her products and manufactures, especially in the years since the war ended. Australia is much more of a manufacturing country than New Zealand is, but it seems as if there is something radically wrong, judging by the great disparity in the figures quoted for the two countries. New Zealand traders have looked upon fhe position as on© leading to dumping by Australian manufacturers, while a high tariff wall has been placed against our exports to Australia. Tlie Sydney Morning Herald, in commenting on the position, says: "Here are two countries peopled by the same race, in much :he same stage of development, having the same social ideals, paying much the same wages. The labours of the men in each country have to be protected from the enterprise of both. Why? Why should it be necessary to protect the Australian workman from the New Zealand womman, and the New Zealand workman from the Australian workman? Trade between the two in each other's products should be of the freest. Any increase in such trade would develop the wealth of botU. That trade is not free between two countries so situated raises the suspicion whether the reason given for the imposition of protective duties Is the real reason. We had our boot manufacturers declaiming against New Zealand imposing a 45 per cent, duty on Australian boots, while 45 per cent, is the general tariff on boots fn Australia. They could say nothing against the British preferential duty of 22J per cent. If Australian boot manufacturers can sell at a profit "Tn New Zealand, in spite of a 22J per cent, duty, why should the imposition of a 35 per cent, duty on British boots coming into Australia be necessary?" This comment is decidedly against Australia's tariff and the treatment of New Zealand~as a. foreign country in customs matters, and if the influences suggested by the Herald have been at work in the past it is easy to understand Mr. statement published in , Werinesdav's cable messages that "trade reciprocity was a very thorny

question,' and iho fact that he has been able to rench an agreement is all the more satisfactory. Jl. is, we think, desirable that there should be as few and light iariii^ as possible for [ countries within ilio Empire, and especially helv.eeM two countries such as Australia and New Zealand, whose interests nr^ so closely related. It is to be hope:! that- both countries will find that the U-np.s of the reciprocity agreement are thoroughly satisfactory and that the respective Governments will ratify th<wh. Miid remove a difficulty that has some misunderstanding and suspicion in the \v.\*t.