TRADE WITH AUSTRALIA

New Zealand Herald, Volume LXXI, Issue 21982, 13 December 1934, Page 12

TRADE WITH AUSTRALIA

In voicing his disappointment at the failure of the trade negotiations between Australia and New Zealand, Mr. Masters put the position squarely, and, for that matter, fairly, when he said this Dominion wanted trade u? make a more even balance. With conditions what they are, Australia is likely always to sell more to New Zealand than is bought here. The Commonwealth produces practically everything from the soil that this country does, has a considerable range of tropical or semi-tropical products as well, and is developing manufacturing industries on an ambitious scale. Consequently there is almost bound to be predominance of exports to, over imports from, this country. There need be no special anxiety over that, for only a world gone mad would demand or expect an exact commodity balance between any two countries. So far as Australian predominance is concerned there are two outstanding points. Where there has seemed to be an opportunity of doing trade from this side, action has often been taken to bar the door. This was done some years ago by means of a prohibitive duty on butter when there seemed to be a prospect of New Zealand selling to the Commonwealth. It happened again when even more drastic action was taken to prevent the entry of potatoes during periods of temporary scarcity in Australia. Again, with tho present state of the exchange, Australian trade tends to increase at the expense of British. New Zealand cannot afford to have this trend go on indefinitely. It is hopeless to expect Britain to buy more New Zealand produce if f he return trade that might have been expected is diverted to Australia. These are two outstanding reasons why New Zealand should demand better treatment, or, if driven to do so," set about getting it. There is always a weapon in the hands of the country which buys most. In this instance the trade agreement is an added weapon. To cancel it and begin negotiations afresh, as Mr. Masters hinted, would be a drastic move, but it may be forced on this country if the renewed efforts to clear trade channels, just announced, do not succeed.