JAPANESE COMPETITION

Otago Daily Times, Issue 21996, 4 July 1933, Page 13

JAPANESE COMPETITION

MENACE TO BRITISH 'TRADE ALTERATION OF DUTY BASIS ' ■/ PROPOSED. (Special to Dailt Times.) . WELLINGTON, July 3. The menace of Japanese competition was referred to .in the evidence which the United Kingdom’ manufacturers and New Zealand Representatives’ Association presented to the Tariff Commission ■ to-day. It was Contended that;ad valorem duties were useless in preventing the increasing importations from Japan,' and it . was hoped . that the' commission would , give particular attention lb -a suggestion' that the .duties should’ be levied, pn a specific basis of so much an 'article, or so much per yard.i etc. 1 1 ■ . The following resolution, whichwas recently passed at a general meeting of’ the association, was-placed before ’the ’commission:^—“ This association views; ‘with grave"''concern the alarming increase in the importation of goods from Japan. These goods are produced by workers who have a much lower standard , of. living than the workers in the United Kingdom, on whom we depend for the sale of the bulk of our primary products, and these imports are most seriously affecting New Zealand importers of similar gb6ds from the United Kingdom. It must ..also, be realised that while at present Japanese competition, is. threatening United Kingdom industries only, 'the time ds’not far distant when Japanese goods will be imported into New Zealand in competition with local manufactures,- for example, woollen goods; and it is obvious.that if this is not prevented it means the closing down of those New Zealand industries. "■ “ Moreover, it is not possible, for local manufacturers to buy British materials and, with the addition of . labour costs, compete with Japanese goods. To quote one example only: A rayon worker in' the United Kingdom receives as much for one hour’s work as a Japanese worker .receives for one day’s work. It is the United Kingdom worker who- buys. onr produce; The success of Japanese industry is due to ‘a deadly-combination of low wages, good workmanship, and a favourable exchange, and,-whilst admitting that fair competition is desirable, it.is obvious that industries in , countries with a higher standard of-living .must either lower their standard’ or close their-industries.

“After _ a.'clog.e, study of the question, this, association is of the opinion, that, lo enable goods imported from; the United Kingdom-to compete oq .even terms with those from Japan the present-method, of levying the duty should be altered/ and that’specific duties of so much per article or per yard, etc., should he levied. This will-,overcome the advantage, which is at present insuperable by the ad valorem duties enjoyed by countries where the current domestic value of goods is so low. In this connection it is interesting to note that the recent Indian Budget proposes tO substitute in the case of rayon’s specific duties of four annas per square yafd ior ; the previous .’SO pgr cent, ad valorem, duty. 1 The previous ad valorem duty proved - ineffective :in -.pro-, tecting the imports .of United Kingdom rayons from the'inroads of Japanese competition. ,* ' ’ • ■' , .“Although the, rayon industry is quoted, competition is also being felt in many other lines in New; Zealand. This association strongly urges that , goods should be compulsorily branded with the country of origin. Realising the extreme seriousness- the position, . this • associ(itiori- urges that the present Tariff .'Cornmission should investigate theposition; and would impress the fact that the. only solution appears to be to substitute specific duties for ad valorem duties, and the compulsory branding ’ of .-all. g.oods where possible ;.on the articles themselves.” • . ■ V ■■

,It was ;added that no request was I'Mnt made. that an embargo should be placed on Japanese importations, but., ttuit a. tariff should be devised as-to enable imports from the United Kingdom to compete on even terms. It was pointed out that in London Customs officials checked the declaration of values,, etc., but in Japan no such check was made.