TARIFF RECIPROCITY.

New Zealand Herald, Volume L, Issue 15374, 8 August 1913, Page 6

TARIFF RECIPROCITY.

The change of Government in Australia has delayed a decision on the question of tariff reciprocity between Australia and New Zealand, but it has opened the prospect of an agreement more satisfactory and permanent than any that could have been made with the Labour Government now out of office. During Mr. Fisher's recent visit to Australia he made a. reciprocity agreement with Mr. Tudor, then Minister for Customs. The agreement lost its value when the Minister who made it went into opposition, but the Australian Labour Government has been succeeded by a Liberal Government which is taking steps to deal promptly and thoroughly with the whole question of tariffs. An early revision of the Australian Federal tariff is looked for and in this revision it is unlikely that reciprocity with New Zealand will be neglected. The new Federal Government occupies a somewhat unusual position in its relation to the tariff. Mr. Cook, the" Prime Minister, is a Free Trader; the great majority of the Ministry and of the party are protectionists. It has been decided to adhere to the existing protective policy, and with this limitation to submit the tariff to a Commission of experts for impartial inquiry and report to Parliament. The object in view is similar to that aimed at by the New Zealand Government— a thorough modernisation of the tariff and the removal of inequalities and restrictions rather than a change of policy. After inquiry by the Commission their report will come before the House and if conflicting views in the House prevent a settlement the electors may be consulted by referendum. The Commission has not yet been appointed ; its duties are obviously not light, so that some time may elapse before an announcement of Australia's attitude to reciprocity can be expected. But the delay may mean a firmer and more lasting treaty, due to the question of reciprocity being considered in both countries in its relation to the whole of the Australian and New Zealand tariffs. In anticipation of the appointment of the Commission the negotiations for ! tariff reciprocity with Canada, which

were broken by the defeat of .the Labour Party at the polls, S ; have already been renewed. We have no market here to compare with Canada and naturally the Canadian negotiations take first place in the eyes of the Australian trader, but we have every reason to expect from' the Government now in power in Australia at least as equitable a scale of reciprocal duties as was agreed upon between Mr. Fisher and Mr. Tudor. "