GOODS FROM JAPAN

New Zealand Herald, Volume LXX, Issue 21454, 30 March 1933, Page 6

GOODS FROM JAPAN

POSITION? IN AUSTRALIA EXPANSION OF IMPORTS SURPRISINGLY LOW PRICES i * PROBLEM OF RESTRICTION ' [from our own correspondent] SYDNEY. March 23 'An outstanding feature of Australia's Overseas trade figures in recent months ■ ; has been a marked growth in the import of Japaneso goods. For the six months to December 31 last these imports amounted to £1,953,649, 'compared with £1,291,794 in the previous half-year. As the recent growth of trade has been marked by heavily reduced prices it is believer that V the increased volume of imports has been leven greater than the figures would indicate. The main increases have been in classes ' ©f goods which are not extensively produced in Australia, and the general effect has been to transfer Australian purchases from one set of overseas manufacturers to another. British exporters have suffered most, particularly in textiles and earthenware goods, and their representatives in 'Australia are concerned at the inroads that have been made on their markets. So far as can be ascertained ' there has been little harmful effect on Australian secondary industries. However, if imports continue to mount at their recent rate, there is a fear among many 'Australian manufacturers that their busi- ; nesses will be interfered with by an extension of the vigorous Japanese trade 'drive. In their assault on the Australian market the Japanese are being aided by the depreciation o£ the yen from the gold ratio of 2s o|d to Is 3d, but even allowing for this advantage some of their goods are being landed in Australia at prices Which surprise the importers. In many classes of cotton piece goods, artificial silks and other textiles, Japanese agents have been able to quote prices far below their British rivals, in spite of the substantial margin of preference granted to British imports. Their prices for toys and fancy goods have also been responsible for the transfer of large volumes of trade formerly placed with central European (countries which had established a reputation for low manufacturing costs. Low labour costs, long working hours, fend big purchases of cotton which are Believed to have been made before the currency depreciated are some of the reasons quoted for the low prices offered by the Japanese. But some close followers of the position believe - that Japanese pianufacturers received some form of Government aid to stimulate exports and icreate foreign' credits. Australia is not the only market which has been affected by the flood of Japanese goods, and Australia is said to be in a favourable position compared with the United States, and even Great Britain. Certain representations have already been made to the Australian Tariff Board, but Australia cannot afford to overlook the fact that its trade balance with Japan is greatly in Australia's favour. The exports last year from Australia to Japan totalled £11,659,012, while the imports of Japanese goods were valued at only £2,396,734. Japan has been one of the principal supporters of the Australian wool market, and has bought large quantities of other primary products. Any move to impost restrictions on Japanese trade might, therefore, be opposed for 'fear of retaliatory action.