TREATY WITH CANADA.

Manawatu Standard, Volume LV, Issue 304, 21 November 1935, Page 10

TREATY WITH CANADA.

MODIFIED AND EXTENDED. Per Press Association. AVELLINGTON, Nov. 21. The following statement was issued by the Minister of Finance (Mr Coates) to-day: By mutual agreement between tlie 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 tlie agreement for a a further period is to permit of arrangements being made for a new agreement. The Canadian Government have promised to meet our request that negotiations to that end should take place in the near future. As a 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 exports from New Zealand to Canada amounted to £222,942 and imports into New Zealand from Canada £l,224,569. In 1932 exports were £208,315, and imports £1,007,096; in 1933 exports' were £433,861 and imports £1,012,213, and in 1934 exports were £'544,931 and imports £1,677,764. A modification of the duties in respect of Canadian motor vehicles has been found necessary as tlie result of amendments made to the tariff last year, particularly in so far as it related to unassembled vehicles, and having regard to the 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 next. The rate for unassembled or Completely knocked-down vehicles containing not less than 75 per cent. Empire content is 10 per cent, ad valorem, and for those containing not less than 65 per cent. Empire content 12i per cent, ad valorem. Such 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 a duty of 25 per cent, ad valorem, and if less than 75 per cent. Empire content to CO per cent, ad valorem. In all eases a surtax of 9-40th of the duty otherwise payable is also chargeable. An Order-in-Council giving effect to the extension and modification ot the agreement will be published in the Gazette to-night.