TRADE WITH BRITAIN

New Zealand Herald, Volume LXXII, Issue 22247, 23 October 1935, Page 9

TRADE WITH BRITAIN

IMPORTED ARTICLES AUSTRALIAN COMPETITION ASSOCIATION'S PROTEST "Members are still finding it most difficult to maintain, let alone increase, their volume of business with this Dominion," states the report of the United Kingdom Manufacturers and New Zealand Representatives' Association for the year jended June 30, to be presented at the annual meeting in Wellington shortly. "Statistics show that while New Zealand buys twice as much from Australia as Australia does from us, yet from our greatest customer, the- United Kingdom, we buy little more than half our total requirements." Figures quoted in the report to show the direction of New Zealand trade include the following:— Exports Imports ♦o from per cent per cent 1933 1934 1938 1934 U.K. .. 86.03 81.59 51.28 50.38 Canada .. 1.37 1.46 4.93 0.69 Australia .. 3.40 3.98 10.03 USA. . - 2.91 2.64 11.62 11.9,9 Other .. 629 10.33 22.14 20.62 "The increase of imports from Australia of many lines which were formerly supplied from the United Kingdom, due mainly to the difference in the exchange rates, is a matter which has caused considerable concern to United. Kingdom manufacturers," states the report. "In some cases they have seen their exports to New Zealand gradually dwindling ■while those from Australia increase until the whole of the trade has been lost to them. "How long New Zealand can continue exporting as much as can be produced to one market and buying in another until at last purely economic laws intervene is a matter of conjecture, but it is apparent that the time is overdue when the problem should be tackled by the Government, and it is the intention of the council to approach the Minister of Customs at a suitable opportunity. "Australia, a country noted for its protectionist policy in the past, realised the protective incidence of an artificial exchange rate, and makes allowance for it accordingly in assessing customs duties. It appears that this is an aspect of our exchange rate which would repay investigation by the New Zealand customs authorities, and perhaps one of the gravest reasons for the objections raised by the manufacturers in the United Kingdom could be removed. In fact, the whole question of the relationship between our customs tariff and the currencies of other countries is worthy of consideration by the New Zealand authorities."