TRADE WITH BRITAIN

New Zealand Herald, Volume LXXIII, Issue 22449, 19 June 1936, Page 12

TRADE WITH BRITAIN

CONFUSING FIGURES Attention was recently drawn to tho British Board of Trade returns, showing exports to New Zealand at about £13,000,000 and imports from the Dominion at £38,000,000. The disphrity was so great that it was assumed that, while exports S'ero returned in sterling, imports were shown in New Zealand currency,. an assumption supported by»the close correspondence of the trade figures presented by the New ... Zealand Government Statistician. The British trade commissioner •, at Wellington, Mr. R. Boulter, points out, « however, t'hat tho assumption is mistaken, both figures being stated in sterling. The Board of Trade, he explains, returns the value of exports at. f.o.b. prices and imports at c.i.f. prices. Thtis the incidence of freight, insurance, commission, etc., upon British imports of New Zealand produce raises their value, while the recording of f.o.b;, values for the goods shipped to New-Zealand keeps their values down. Wtfile the Board of Trado figures must] therefore be accepted as a correct statement, they nevertheless givo a. wrong impression* of tho balance of total'; trade between Britain and New Zealajnd. The balance of exchange is much loss than the £25,000,000 sterling shown in New Zealand's favour. Allowance should first be made for the different bases on which British exports 1 and imports are made. Then to British exports should bo added the heavy payments by New Zealand to Britain for freights, insurance and commission ,on both exports and imports. ,Finally there is the heavy annual interest bill to add to British receipts, while allowance should be made for reexports of New Zealand produce from Britain ,to foreign buyers. This item in itself must be considerable. If |a careful balance were made on these} lines a complete view of trado between the two countries would be obtaiped and one much more favourable r to N6w Zealand than tho present Board of Tpade return. It would also provide a faij-er and sounder basis of compari- & son when it came to trade negotiationij between the two countries.