CANADIAN TARIFF.

New Zealand Herald, Volume LXVIII, Issue 20889, 3 June 1931, Page 10

CANADIAN TARIFF.

DIVERSION OF TRADE. j 4 ■ SMALL GAIN TO BRITAIN. FOREIGN COUNTRIES BENEFIT. : / AUCKLAND IMPORTERS' VIEWS. Leading Auckland importers of Canadian .goods are unanimous in the belief that the wholesale tariff increase against Canada has dealt a staggering blow to r , trade with the sister Dominion. ;It is regarded as certain that the removal of preference from numerous classes of" goods -will result in business going outside the Empire. This particularly applies to lines in which Great Britain is not a competitor. While many Canadian factories are subsidiaries of great manufacturing organisations in the United States, others have been founded in comparatively recent years solely by Canadian enterprise and financed with Canadian capital. These latter, after the factories of Britain, have a strong claim upon the patronage of the New Zealand consumer. Under tariff equality, importers consider. it is more than doubtful whether many Canadian manufacturers will be able to compete successfully with their American rivals for the New Zealand trade. Generally speaking, factory costs in the United States are lower than in Canada, owing to the greater size of the plants, and, moreover, many American concerns, after satisfying the demands of an enormous domestic market, find it possible to sell their surplus for export at ' prices which, all things considered, are relatively low. To such advantages is now being added that of shipping heavily subsidised by the State. Position of Britain. The difference in producing costs as lictwccn the two countries is shown by the advertised retail prices of various standard proprietary articles made in factories on both sides of the border, the Canadian prices being slightly higher. L'his difference was of no moment as far is New Zealand was concerned so long as ,tine preferential duty remained. In fact, Canada was able to draw ahead of her rival in a number of commodities, quite part from the inducement which British preference offered to American manufacturers to set up factories in Canada and supply the British Empire from them. It does not appear at present that Great Britain will gain nearly so much from the abolition of preference as the 1 United States j in fact, merchants consider that she will get very little on the whole.. A notable exception will probably" be iron and steel bars and rods, especially those used for reinforcing concrete. For seven or eight years Canada lias been turning out these in a quality very well suited to New Zealand require mentis at practically the same price as the British article. It is now expected that the whole of the trade will go to Britain.

Unfortunately the same cannot be said of other lines.. Business in glass, not a large item, wiil probably be transferred to Austria and Czecho-Slovakia. Some of the large trade in rubber shoes may go to Britain, but America is likely to Lo a strong competitor for business of which Cziiiada had almost a monopoly. There is also talk of cheap grades of rubber shoes coming from Japan and other parts of the, East, A Chance lor Japan.

," Now 'is the opportunity for Japan and the Chinese merchants at Singapore," said the representative of a city firm ■\vhich'imports rubber tennis shoes from Canada.' At one' time all the importations of rubber shoes were from Canada and England, he added, but Chinese firms at Sing'apore and Japanese manufacturers, came on to the market, and, judging by the prices these hrnis quoted last year, they would now have an excellent opportunity of, capturing all the trade.

In the numerous classes of iron and steel goods, including agricultural machinery, lawnmowers, electric stoves, tools aud hardware, Canada will be competing on slightly unfavouiable terms ■with the United States. Where British manufacturers turn out an article generally similar to that made in North America or equally suited to New Zealand requirements, the tariff increase represents a trade opportunity for them. On the other hand, Britain cannot hope to score on such lines as electric stoves and certain classes of agricultural iniplc■Tncnts. She lias, however, some prospects in hardware and electrical fittings. j The trade in canned salmon offers some peculiar features. Jn the past, fish from Alaska and Washington has not been a serious competitor in New Zealand with that from British. Columbia, owing to the preferential duty. Now that equality reigns sales should depend mainly on the respective prices declared for the new season's pack in tho different grades and localities-. These may happen -to bo in favour of either country, according to the run of the fish.

VALUE OF TREATY. AUSTRALIAN BUTTER TRADE. GOOD PRICES REALISED. (Received June 2, 9.45 p.m.) SYDNEY, June 2. When .addressing n conference of dairy factory managers to-day Mr! C. D. Meares, general manager of the Producers' Cooperative Society, said Australia and New Zealand would supply Britain with onehalf of her butter imports this year. A record season had been enjoyed in Australia. About 150,000 tons of butter bad been manufactured in the Commonwealth during the past 12 months, the value of which was £20,000,000, and 70,000 tons were being exported. Mr. Meares emphasised the boon which the reciprocal treaty with Canada had been to Australia. Already 48,000 boxes nt butler had been exported to Canada nod the prices realised were better than if if had been sold'iri London or Sydney. A message from Ottawa says the Prime Minister, Mr R. JJ. Bennett, announces tliat the trade agreement with Australia is; likely to be submitted to Parliament in itlie present session for ratification.

SILK STOCKINGS. HIGHER PRICE LEVEL. -An. increase of about 2s a pair will result in the price of women's silk stockings, following the new Canadian tariff according to the buyer of a large city firm, who said 95 per cent, of the women in Auckland nowadays wore silk hosiery. i in pUle sill< stockings sold in Auckland, .80 per cent, were of Canadian VSif v° « at I th , e nia i o,it - v of the lines would be affected. Ho said the effect A Lll® u 6V \ ta , riff would Probably be to United » IT)'-Si,k 1 T ) '- Si,k !ilo( ' ki "R s to tllC M * C ° UUI " 0t