TRADE WITH AMERICA.

New Zealand Herald, Volume LXVII, Issue 20496, 22 February 1930, Page 14

TRADE WITH AMERICA.

THE ADVERSE BALANCE.

LARGE INDIRECT EXPORTS.

NO DUTY ON MANY PRODUCTS.

The trade of New Zealand with the United States, according to the official statistics, produces a largo annual excess of imports over exports. Tho returns for the last five years show exports equivalent to only about 43 per cent, of imports direct from tho United States. Following is a summary for tho last fivo years of tho recorded value of exports to, and of imports shipped from, tho United States: —

Exports. Imports. Excess. 1925 r .v £'1.340,758 £8,626,059 £4,277,201 1926 ... 3,818,232 0,720,251 5,911,019 19»7 ~, 2,081.001 7,827,755 5,140,664 19°0 i*.' 3,653,327 9,080,431 5,427,107

Totals £18,762,723 .£43,223,160 JC24,4C0,137

Tho returns of imports according to "country of origin" increase the total for the fivo years by £1,272,587.

Wool Bought in Britain

A communication has been received from the American Trade Commissioner, Mr. Julian B. Foster, suggesting that, since theso statistics represent only tho direct exchange of commodities, they do not portray the full dimensions of tho commerce between tho two countries. A considerable quantity of New Zealand produco which is exported to the United Kingdom, and so recorded in the statistics, is subsequently re-exported to the United States. This is illustrated especially in the caso of wool. An exhaustive examination of tho imports of wool into tho United States has been mado by Mr. Hiram T. Nones, tho textile trade commissioner, and a classification according to country of production compiled, identification being possible from tho information contained in tho invoices as tho customs officials require the country of origin ns well as of shipment to bo stated. Thus in 1928 imports of New Zealand wool comprised 9,597,7461b. from the Dominion direct; 7,514,8341b. from tho United Kingdom; 28,0151b. from Canada; and 37501b. from Australia. Mr. Foster remarks that these rooxports of New Zealand wool represent about 3.000,000 dollars, and in addition, similar indirect exports through tho United Kingdom, of skins, pelts, hides and other products represent fully 500,000 dollars. Moreover, the stated valuation of imports from tho United States are 10 per cent greater than the money value received in the States. If allowance is made for these items, the actual adverso trado balance in 1928 becomes only £2,500,000. "which is not a very unfavourable one as trado balances go." Dutiable and Non-Dutiable Goods.

Mr. Foster has also compiled, from the United States returns, information regarding imports from New Zealand showing that a large proportion of the exports from New Zealand enter America without having to pay any customs duty. In 1927 New Zealand products to the value of 9.395,000 dollars were imported free of duty arid 3,276,000 dollars worth were imported dutiable. The non-dutiable imports represented 74 per cent, of the total. The proportion was lower in 1928, the proportion entered free of duty having been 59.6 per cent. The American valuation of duty-free imports was 11.443,000 dollars, and of dutiable imports 7,765,000 dollars.

Following is a summary of the principal imports, in the two years, that wore admitted free of duty:—

1927. 1925. Dollars. . DoJlars. Sausage casingß .. 1,191,003 1,038,022 Cuttle hides . . 851,310 1.705.357 Calfskins .. 414,8G6 5-12,613 Sheepskins .. .. 4,013.151 5,001.050 Rabbitskins . . . . 1,072,023 539.782 Cocoa beans .. .. 71,402 24,920 Kauri gum . . . . 585,555 r, 98,90S Copra and Oilseeds .. Flax fibro .. 782.799 402,211 Dried blood . . . . 35,981 77,742

Mr. Foster adds that in spite of the general belief th.-t the United States is the most highly-jirotceted market in existence, about 67 per cent, of all the imports entering the country are freo of duty.