TRADE WITH BRITAIN.

New Zealand Herald, Volume LXII, Issue 19169, 7 November 1925, Page 10

TRADE WITH BRITAIN.

A filial decision upon the question of the preference ratio in the taxation of imports from Imperial sources has apparently been post- : poned by the Government until its own position should have been determined. Action should now be taken promptly to define the Government's policy. The question of increasing the ratio of British value required to qualify for preferential treatment was raised two years ago, and a decision in favour of 50 per cent, might have been quickly made effective, but lor the attitude of Australia, which has given effect to its determination to raise the proportion to the high figure of 75 per cent. There was a proposal that New Zealand should take similar action, but consideration of the risks of injuring British : trade has led the Government to I postpone the change. As matters now stand, there is a formal notification that the ratio will be raised i to 75 per cent, on January 1, but it I is understood that this proposal will |be modified. There is convincing I evidence that a very grave mistake j would be made if such a restriction were imposed upon the operation •of the preferential tariff. The im- ( mediate effect would be to prejudice Britain's trade with the Dominion, and consequently io hamper the marketing of New Zealand pioduce in Britain. Examination of the available statistical informa- : tion indicates that while the extenI sion of preference by the 1921 rcvi- ! sion of the tariff has fostered trade | with the Empire, the improvement ; has been chiefly in imports from the j other Dominions, at the expense of ! Britain. Any drastic alteration of j the preference conditions would j aggravate that tendency, for while ! almost all imports from the ; Dominions would still be able to qualify a large proportion of British manufactures from foreign materials would be excluded. No substantial objection was raised to I the proposal that the ratio should | he 50 per cent., and generally that | alteration should be directly beneficial to British industry, as it would : give its products a tariff advantage ! over foreign goods that now compete on even terms owing to the i addition to their original value of j handling charges in Britain. In I view of the state of British trade : and of the importance of any change in the operation of the tariff, an I early announcement of the Govern- | merit's decision is advisable.