PREFERENTIAL TRADE.

New Zealand Herald, Volume LXI, Issue 18889, 11 December 1924, Page 7

PREFERENTIAL TRADE.

THE NEW CONDITIONS. INCREASE IN PERCENTAGE. WOOL MERCHANTS CONCERNED. [FROM OPS OWN CORRESPONDENT. \ LONDON- Oct. 30. At a meeting of the Bradford Chamber of Commerce communications were received giving a fairly full and clear explanation of the new preference conditions which it is proposed to adopt in Australia and New Zealand next year. When the announcement regarding this subject was first made, a week or two ago, several important newspapers went considerably astray in their comments. Now, however, a more elaborate explanation has been issued from the two High Commissioners' offices.

At the Bradford meeting, however, it was evident that there are still difficulties in the way of a clear understanding of what is really impliijd by the new conditions. When the Communications had been read Mr. Emsley, one of the members, said he did not know how they were going to make declarations to satisfy the conditions, seeing it was difficult to say where the wool for the top came from. Ho recalled once asking the president what was the composition of his top. Mr. Aykroyd told him to mind his own business.

Mr. W. H. Lister said that the words "provided similar goods are not produced in Australia" were a most serious proviso, which would bar all woollen and worsted goods.

Meaning oi Word British. The president said it would clear the difficulty to su large extent if, as in the case of New Zealand, the word "British" applied in its widest sense to the Empire as a whole. Mr. Edward 35. Thackery said that Australia had, been the prime mover in instituting increased preference for British productions, in her desire to help His Majesty's Government to remove the burden of unemployment. Contrary to New Zealand, therefore, Australia confined herself to Britain. The conditions struck him as a little ambiguous, but there was the evident desire to do something for the Motherland. It was pointed out that, as drawn up, the Australian conditions would appear to preclude from preference goods made of Australian wool. It was decided to write for a fuller explanation of the terms of the Australian preference scheme.

In an article on the same subject the Statist indicates that the result of the new regulations will be (that New Zealand buyers will have to pay more for thengoods. "The value of Imperial preference to this country." says the writer, "will be lessened by the decision of the Nisw Zealand Government that, as from April 1, the proportion of British value required in goods in order that they may be entered under the British preferential tariff will be 75 per cent. This has reference to the proportion of labour and material of British origin required in the case of goods which may be manufactured in part from material originating in a foreign country. Effect on New Zealand.

"The proportion of British origin at present required is 25 per cent., and it is obvious that, generally, if British manufacturers attempt to work up to the ligher percentage requirement, the cost of goods intended for New Zealand, as well as 'other markets, will show an increase. Otherwise, manufacturers will have to resign themselves to the necessity of exporting goods to New Zealand under the general, or intermediate, tariffs rather than under the preferential. It is probable that most manufacturers will elect to follow the latter course and forego the advantages of the preferential rate." , The writer concludes: —"It is not difficult to foresee eventually a further contraction of Imperial preference by the extension of preferential concessions to foi*eign countries in return for reciprocal advantages. Mr. Bruce has already used language which clearly envisages that possibility. Such a policy would, it is evident, be employed sparingly, as, on account of Australia's small population, an undue extension of preference would do much to impair its value British exporters, therefore, will do well to recognise the possibility of a progressive curtailment of their competitive advantages in trade with the Southern Dominions."