A TRADE AGREEMENT.

Manawatu Standard, Volume LV, Issue 303, 20 November 1935, Page 6

A TRADE AGREEMENT.

With the signing of the trade agreement between the United States and Canada the text has been revealed by President Roosevelt. Mr Mackenzie King, the new Liberal Prime Minister of Canada, has lost no time in at least making an effort to revive trade between the two countries, which has fallen from 1400 million dollars to 500 million, while business interests on both sides of the border have suffered serious losses. The new treaty is another act of friendship betiveen two historically friendly neighbours, as President Roosevelt claims, while Mr King was quick to say that it would not interfere in any way with the Ottawa Agreements. That is a point upon which British manufacturers must be assured, for Empire economic unity was a force behind the Ottawa Conference. One section of the agreement is of particular interest to New Zealand. Creamery products are to be admitted from Canada into the United States at a reduction of something less than 50 per cent, of the existing rates of duty, and the effect of this concession will be watched with the greatest interest for its future bearing upon the Canadian dairy industry. Eor years Canada’s farmers found a profitable outlet in the United States for whole milk and cream: but with the advent of first the Fordney-McCumber tariff of 1921, and later the Smoot-Hawley tariff of 1929, the outlet was severely restricted. In consequence Canadian producers had to turn their attention to the manufacture of butter to protect their industry, and this tvas reflected later in the Canadian tariff on Neiv Zealand’s butter which, under the Bennett regime, was made prohibitory. The election by Avhich Mr Bennett came to office was really fought on a “Bar New Zealand butter” cry. Since then the duty has been somewhat reduced through the negotiation of a trade agreement between the two Dominions, but it does not encourage export. It will be hoped that the new treaty will enable Canadian farmers to widen their outlet in the United States, so that this Dominion may again find a good market in Canada for butter.