TRADE RECIPROCITY

Manawatu Times, Volume XLIX, Issue 3494, 2 November 1926, Page 5

TRADE RECIPROCITY

ADDKJESS AT KOTAKY CBUS. 1 BY j\m. G. H. SCOTT. The speaker at yesterday’s meeting of the Rotary Club was air. G. B. Scott, chairman of the New Zealand Association of British Manufacturers Kotarian Seifert briefly introduced the speaker, who proceeded to deliver a most instructive address on "Trade .Reciprocity.” This subject, he said, was one of the most important, and at the same time one of the most interesting matters which one could discuss. As doubt' less his hearers knew, New Zealand's prosperity depended to a largo degree upon our reciprocal relationships with other countries, a fact all the more important in view of the proposed tariff alterations next session. Our trade in New Zealand, and our trade relationships with other lands were seldom worried about by the average man, or even by politicians, and surely, he said, there was no subject which deserved closer attention. We could have our trade relationship—our interchange of commodities —but we need not necessarily make this trade robjprocal, which meant giving and receiving mutually. New Zealand had been, and was still, the target for all countries in regard to the sale of manufactured articles. The Dominion had not only the various Units of the Empire selling within her shores, but also foreign nations endeavouring to sell off their surplus products, and it was essential for New Zealanders to sec that their trade was carried on on a fifty-fifty basis, for there was no sanity in making bargains internationally which would not. stand the test to which our personal bargains were subjected. We could claim the right, to use the term “trade reciprocity” when wo discovered some means of substituting our products for the hard cash we sent out of the country to pay for our imports. As yet the only plan to effect this was in connection with our tariffs, apart from those set up merely for retaliation purposes. This barrier, Mr. Scott thought, should bo built with a view to providing a basis for our trade negotiations, for high tariffs were full of danger at every point, especially in regard to the cost of living. Booking outside the Dominion, one found that at the present time all nations were inclined to increase their tariffs, and in foreign nations especially the barriers against us were prohibitive. We bad not yet taken the steps which these nations had taken since the war—we were standing still whilst they built larger tariffs against us. The U.5.A.,. Canada, Germany, France. Italy, ail those countries could sell their products in large quantities only in sections of the British Empire—a fact which gave us considerable cause for thought. It was an astounding revelation, when one realised that the best markets all the world over, and for all nations, were ip the British Empire. If we wore to make ideal trading

conditions, then, they wonld surely take' tlio form of reciprocity within the Empire lirst of all. anutollowing that, reciprocity with foreign nations. But in this plan one found difficulties at every point, for, under our present trade system, each unit of the Empire traded separately with the other units, and at the same time carried on incir trade with foreign nations under an infinite variety of terms, some of which wore eminently unsatisfactory. Now Zealand sent out to other countries millions of pounds worth of gold, whilst there was a possiblity for an extension of reciprocal trade with other Dominions. Mr. Scott read an extract from a speech delivered by Col. Amery, Secretary of State for the Colonies, dealing with trade co-opera-tion among the Dominions. There was no doubt that reciprocity in the Empire must develop quickly if the various colonies were going to save themselves the necessity of sending out hard cash in payment for their imports.

The peace of the world, continued Mr. Scott, was largely ia the hands of the English-speaking nations. It was an obvious necessity, then, that all those nations should trade with each other in such a way as to make them all dependant on one another, thus more and more eliminating the danger of war. There should be between the Engish-spoaking nations such a basis of trading as keep them together.

Mr. Scott went on to deal with the question of trade in relation to our foodstuffs. Where could we hope to sell those products with any hope of making (a reciprocal bargain? The U.S.A. produced her own foodstuff's and did not want to bargain with us for these products; in that country and with Canada our trade in foodstuffs was only seasonal, and it was only in countries where our trade was continual that we could hope to make reciprocal bargains. Our only market in this respect was really in England, and a small part in the Continent of Europe. It was no good trying to drive bargains with countries who i did not want them —we would have to find some other basis.

The speaker quoted figures in regard to our trade with England. Canada, and U.S.A. during the past few years. In one year we had received from our trade with England a credit balance of £57,000,000. We had purchased from foreign nations about f9G.000.000 worth of goods and had sold to them about £38,000,000 worth, leaving a debit balance of about £58,000,000, which we had paid in hard cash. In the same year we had purchased from Canada goods to the value of £12,000,000, and in return had sold £2,500,000 worth, leaving a debit balance of £9,500,000, which again had been paid in hard cash. We could not say that we were trading on a sound basis when doing so under this system.

Our raw products such as woo} should bo used in building up reciprocal trade regulations, concluded Mr. Scott. Regulations with all nations, which would enable us to manufacture our own products and send them away ourselves. U.S.A. were “breaking their necks” to get onr wool—our rugs shamed even their best—so surely there was some method of trades which would allow us to send to U.S.A. onr woollen products in exchange tor the enormous quantity of trade which we received from that country. At present our trade was on a one-sided basis, and the citizens of New Zealand had a duty to discover some means whereby less money should go out of the 'Dominion in payment tor our •ftoducts. On the motion of Rotarian M. Cohen, Mr. Scott was accorded a hearty vote of thanks for his interesting address.