TRADE WITH CANADA.

New Zealand Herald, Volume LXVIII, Issue 20867, 8 May 1931, Page 13

TRADE WITH CANADA.

DELAY OVER AGREEMENT. « p—— ANXIETY IN AUCKLAND. V DETRIMENTAL EFFECT FEARED. The need for a trade treaty with Canada on lines similar to that now in course of preparation between Canada and Australia was urged at. a meeting of the council of the Auckland Chamber of Commerce yesterday. Canadian business men, according to a letter received by the council, were just as keen to obtain an agreement with the Dominion as were New Zealand business men. Mr. T. C. Webster said it was time' something was done to procure a trad<» treaty with Canada. If the Government's intention was to leave the matter until the Economic Conference to be held in Ottawa toward the end of the year tho interval of time that must elapse before an agreement could come into operation would be unnecessarily long. Mr. H. Turner: In the meantime wo are losing our trado. Mr. A. G. Lunn said that not a single box of New Zealand butter had been despatched to Canada on the last two trips of the Niagara. The position was causing anxiety. Mr. F. H. Leonard said there was a good chance that New Zealand would be offered similar terms to those made with Australia. On the motion of Mr. F. C. Brookbanks it was decided to take the matter up with the local members of Parliament, Cabinet having already been approached. Mr. Webster moved " that the Government be urged at the forthcoming Economic Conference at Ottawa to press for a tariff union of the Empire with effective protection against foreign countries, upon the ground that the greatest prosperity of the British peoples can only be achieved by the development of the Empire as a single economic unit with eventual complete freedom of trade within its borders." The motion was referred to the executive for a report.

CANADIAN VIEWPOINT. BOTH COUNTRIES SUFFERING. NEWSPAPER'S PLEA FOR ACTION. [FROM OT7R OWN CORRESPONDENT.] VANCOUVER, April 12. An extraordinary change has come over the trade relations of New Zealand and Canada, since the latter raised the duty on butter and the former retaliated with a higher duty on automobiles. From January to October, 1930, prior to the alteration of the duty, New Zealand exported approximately 37,000,0001b. of butter to Canada, or an average of 4,000.0001b. a month. In subsequent months butter arrived in Canada as follows :—November, 641b.; December, 84,2421b.; January, 17961b.; February, 132,3381b. The total value of motor-cars exported from Canada to New Zealand in 1930 was £1,120,000, nearly 8000 cars being exported, or over 650 per month. In the month of January, this year, Canada exported 225 cars, valued at £19,800. In February only four cars were exported. These figures show the effect of the cancellation of the agreement with New Zealand and demonstrate that the results have been most unfortunate for both countries.

The Vancouver Daily Province, which has always sponsored the agreement, is urging Canadian business interests to emphasise the need for immediate action and to urge the Canadian Government to restore the agreement. "New Zealand," it says, "feels the loss of her butter trade keenly and has an idea that Australia has got ahead of her through the negotiation of a reciprocal agreement with Canada. Mr. Forbes has been blamed severely for the prevailing conditions and has been criticised for not returning from the Imperial Conference by way of Canada. "The Australian agreement, however, is stilf hanging fire. Mr. Stevons, the Minister at Ottawa most interested in carrying it through, has been ill, and in Australia the. Government has been very much worried by both financial and political troubles. When the Australian agreement has been completed, no doubt steps will be taken to arrange a similar treaty with New Zealand. "The two southern Dominions are both good customers of Canada and have a market capable of being developed. They have similar products to export and there should be a market for some of these in Canada. It was never intended that one should be treated differently from the other. "But while negotiations are dragging, New Zealand is becoming impatient and the Chamber of Commerce in Auckland has decided to take up the matter of better relations with the New Zealand Government, the other New Zealand chambers of commerce and the Canadian boards of trade. It is to be hoped that its efforts will meet with success. If the method of negotiating, instkd of clapping on high duties, had been adopted from the beginning, the trade between the two countries might have been in a more satisfactory condition to-day."