TRADE WITH CANADA.

New Zealand Herald, Volume LXVIII, Issue 21068, 30 December 1931, Page 8

TRADE WITH CANADA.

The knowledge that negotiations are actually proceeding between representatives of Canada and New Zealand with the object of framing a reciprocal tariff treaty revives hopes of an early termination of a conflict between sister Dominions that has always been deplorable. With the utmost confidence, it may be assumed that when they leave Honolulu in a fortnight they will have agreed upon a schedule of reciprocal concessions for submission to their colleagues and Parliaments. As the Canadian Parliament is to resume at the beginning of February and there is a suggestion of an early session in New Zealand, ratification of the treaty may be accomplished within a few months. There are, however, the strongest reasons for urging that the present unsatisfactory position should not be prolonged until the treaty has been completed. It is obvious that the basis of the negotiations must be the existing British preferential tariffs, and their result an exchange of concessions on particular commodities. In retaliation for the raising of the duty on butter, the New Zealand Government, imposed foreign rates of duty on nearly all imports from Canada. Technically at least, Canada has not resorted to reprisals, for the obnoxious duty on butter is the preferential rate, and all imports from New Zealand are. still admitted under the preference tariff. In these circumstances, it would lie a graceful act for the Government, immediately it is assured that the negotiations have been successful, to revoke the. two Orders-in-Council by which the duties on Canadian goods were raised, arid thus restore the former relation of reciprocity on the basis of Imperial preferential rates. By this means the Government would express to Canada the general desire for the maintenance of the traditional friendship and goodwill between the Dominions, and would abandon an attitude that has provoked resentment in I Canada, and would bring New. Zealand's representatives into ridicule if they attempted to defend it at the Empire Economic Conference in Ottawa. By abandoning this untenable position promptly and generously, the Government would create such a favourable impression in Canada that ratification of the treaty would be assured.