TRADE TREATY

Otago Daily Times, Issue 21404, 4 August 1931, Page 3

TRADE TREATY

AUSTRALIA AND CANADA 1 NEW ZEALAND HIT, (From Our OiVn Correspondent.) . \ ’ SYDNEY, July 18. It is feared here that the new trade treaty which has been entered into botlveen Canada and Australia will not tend to increase friendly trading relations between New Zealand and the Commonwealth. Of course, it is difficult to say at this stage just how the treaty will operate, but even! a hurried glance must ..convince that the treaty will hit, Neiy ' Zealand harder than any other country. Observers here .say that Australia basscoied a distinct victory at the expense, of Now Zealand, particularly as far as dairy produce is concerned. It is feared that New Zealand might regard the treaty in the nature of a “ hostile ” act, and make trading with Australia even more difficult. It is bound to complicate any negotiations ‘ for a treaty between New Zealand and the Commonwealth.

The treaty is certainly one of the most comprehensive interdominion;, treaties yet made, far exceeding in importance to both countries any previous attempt to improve trade relations. It would seem that the primary industries of Australia are likely to derive the most benefit, and that at the expense of New Zealand. Both countries agree not to apply the dumping provisions of their laws against the goods of the other country. This is expected to assist materially Australian butter, dried fruits, and wine. As showing the benefits of the new agreement, it is pointed out that in no case will rates imposed on Australian products entering Canada exceed the 'British preferential tariff, while in,many cases these rates will be below the British preferential tariff. Under the terms of the treaty Australian butter will be admitted at five cents per lb, and will thus have the advantage of 14s per hundredweight oyer New Zea land butter, which hitherto held practically the whole of the Canadian market. Australia will also be exempt from the dumping duty which operates against New Zealand, and as against butter from other countries will have the protection of a Canadian tariff of eight cents per lb of English butter, 12 cents per lb interraeaiate, and 14 cents general. It is confidently expected here that Australia will capture the whole of the Canadian market for imported butter. Australian cheese will pay one cent per lb duty, while the preference against other countries except Great Britain is increased from three cents to six cents per lb. The Canadian cheese market is at present divided among the United States, the United Kingdom, and European countries. Australian fresh fruits will be admitted free, and it is expected that this will provide a vast market for Australia at a time when such a one is badly needed. At the present time there is a glut of fruit in Australia all the year round. Just now the market is glutted with some of the finest oranges the world produces. There is difficulty in selling them in Sydney at Is a dozen. Of course big shipments have gone to Canada in the past, but it is a risky trade, and the imposition of a duty was not am encouragement to exporters to take undue risks. While Australian oranges will be admitted free, oranges from the United States, which has held the bulk of the market, and other countries will pay a duty of 35 cents per cubic feet. Canned pineapples from Australia will be admitted at 1 cent per lb, with penalties ranging up to 5 cents for pineapples from other countries; It has been announced by the Minister for Trade and Customs that a contract for £150,000 worth of pineapples had been signed conditionally upon the confirmation of the treaty. Australian concessions mostly concern canned salmon, in which an important advantage is given to Canada over the United States, timber, motor chassis, and newsprint. Assurance has been, given by Canadian salmon packers that there will be no increase in prices because of the preference granted by Australia. Chassis manufacture is more expensive in Canada than in the United States and the previous preference was therefore of little advantage to Canada. Under the terms of the treaty the position is more than equalised. As both countries were primary producing ones the drafting of the treaty was not an easy one and great care had to be observed by the representative of each country to ensure that the interests of the other country would not be embarrassed.