NEW TRADE AGREEMENT.

New Zealand Herald, Volume LXVIII, Issue 20925, 15 July 1931, Page 11

NEW TRADE AGREEMENT.

CANADA AND AUSTRALIA. MUTUAL PREFERENCES. BENEFITS TO COMMONWEALTH. By Telegraph—Press Association—Copyright. (Received July 14. 6.45 p.m.) OTTAWA. July 13. The Prime Minister, Mr. R. B. Bennett, laid the new trade agreement' between Canada and Australia on the table of the House of Commons this evening. Mr. Bennett announced that the great bulk of the commodities exported from Canada were guaranteed substantial tariff preference in Australia, In return, Canada will accord to Australia its British preferential tariff, and reduced nftes on 28 items of the Canadian tariff. Mr. Bennett said: " Throughout the negotiations, which have now culminated in the conclusion of a broad trade agreement, we have sought to. adhere to the principle of diverting to" each other trade which at present is being done with countries outside the Empire. " I sincerely hope and trust that the agreement will bear the which we .so earnestly desire." The Minister of Trade and Commerce, Sir. 11. H. Stevens, 'commenting on the treaty said : " The whole of Canada will share in the benefit. The Pacific Coast will get a special advantage on timber, paper, and lish. Under the. blanket concession of the British preferential tariff manufacturers o! miscellaneous goods all over Canada will benefit." AUSTRALIAN BUTTER. ADVANTAGE OVER DOMINION. 14s PER CWT. LOWER RATE. (Received July 15, 12.15 a.m.) CANBERRA. July It. The Minister of Markets, Mr. P. Moloney, 10-duy tabled the reciprocal trade treaty between Canada "and Australia. Certain Australian goods are to bo admitted into Canada at rates lower than the 'British preferential rate. This cover's i'resir and canned meats, eggs, dairy produce, hops, rice, fruits and wines. Australian butter is to bo admitted into Canada at 14s per cwt. lower than New Zealand. Prior to the alterations of the Canadian tariff last year, the duty on butter was 3 cents per'lb.,-British preferential rate, and 4 cents under other categories. By the trade agreement with. Australia, the benefits 'of which ,wcro extended to New Zealand, from October 1, 1925, the duty was reduced to 1 cent. Last year the duty on New Zealand butter was increased to 4 cents and subsequently to 8 "cents, the latter being ,the British preferential rate, that on foreign butter being increased to 14 cents, a purely nominal provision. A substantial preference, is now offered to Australia. The difference of 14s per cwt. mentioned in the cablegram represents lid per lb., so that the duty on Australian butter will be 2i,cl, as against 4d on New Zealand butter. ' TRADE WITH CANADA. DELAY OVER AGREEMENT. DISAPPOINTMENT OF IMPORTERS. No indication as to when a satisfactory trade agreement between New Zealand and Canada will be made can be given yet by the Prime Minister, the Rt. Hon. G. W. Forbes, according tp information received frorn him by the Canadian British Traders' Association yesterday.. The letter also states that in the circumstances there can be no promise of refunds of extra duty paid on goods contracted for before the tariff was increased, but the request will receive, careful consideration. Regret that a definite promise of a refund when a trade agreement is reached has not been made was expressed by Mr. A. G. Wilson, secretary of the association. He said, however, that he appreciated the fact that the request will be kept steadily in view. ~ . ' •" The retaliatory tariff imposed on Canadian goods has resulted in a serious direct loss to New Zealand importers on contracts entered into by them before any notice was received that they were to be put into immediate effect," said Mr. Wilson. "The present state of uncertainty also is a great hardship to merchants and importers." If a merchant ordered a Canadian ■ article hoping that a trade agreement would be finalised before the goods arrived, lie said, and the agreement was j not completed, the merchant would be ■ penalised by the extra duty. Again, if he purchased from a foreign country and a trade settlement was reached in the meantime, the importer would still be '• penalised by the relatively higher cost of the foreign article. • I (