TRADE WITH AUSTRALIA.

New Zealand Herald, Volume LXIX, Issue 21165, 23 April 1932, Page 10

TRADE WITH AUSTRALIA.

A shrinkage of export trade with New Zealand is causing perturbation in Australia. The figures quoted in a cable message indicate a move ment sufficient to explain why the question has been raised, but they do not tell the whole story. It is true that a fall from £5,157,000 in 1925-26 to £2,970,000 suggests that something more than trade depression, difficulties over the exchange, and reduced prices must be sought as an explanation ; but it does not demonstrate what has been, in fact, a fairly continuous movement. New Zealand official statistics do not wholly correspond with the Australian figures quoted, probably because the months taken to make a full year are different. But in the New Zealand records percentages are given which demonstrate most convincingly how the Australian share in this Dominion's import trade has fluctuated. In 1920 the Commonwealth had 14 per cent, of the import trade. That proportion has never been reached since. There were fluctuations for the next two or three years, but in 1924 some of the ground lost earlier was regained and 11.64 per cent, of this country's imports came from Australia. There has been a decline since, but it has not been uniform. The last two years have seen a relative recovery. The figures since 1924 have been J 925, 10.01 ; 1926, 9.27; 1927, 8.64 ; 1928, 7.79; 1929, 6.68; 1930, 7.69 ; and 1931, 9.80 percent. Considering how the bulk and value of imports have shrunk, Australia has not done badly to have increased her proportionate share as the percentage figures for the last two years indicate. Bceent decreases are reported to have been mainly in wheat, flour, timber and coal. On the other hand, New Zealand's exports to Australia have diminished both absolutely and relatively in the past few years. There has been a decided fall in value from £3,666,000 in 11927 to £1,562,000 in 1930. In that time the quota of New Zealand exports sent to the Commonwealth has fallen from 7.56 to 3.33 per cent, of the whole overseas trade of this country. Hides, skins, wool and white pine account principally for the decline. If, therefore, Australia is perturbed about the loss of export trade done with New Zealand, there is more reason to be concerned here about the greater shrinkage of the flow in the opposite direction.