RECIPROCAL TRADE FEDERATION

Otago Daily Times, Issue 22205, 7 March 1934, Page 7

RECIPROCAL TRADE FEDERATION

DOMINION PRODUCERS AND BRITISH MANUFACTURERS A DEFINITION OF POLICY The New Zealand Producers' and United Kingdom Manufacturers* Reciprocal Trade Federation has issued a statement, in defence of its policy and dealing with privileges and obligations under ; the /..Ottawa .Agree- '..■■■ ••■■; , '.■;■; £.; They maintain that for the privilege of free entry to New Zealand exports to Great Britain, plus certain preferential treatment under schedule B, given to New Zealand goods, ; New Zealand agrees to remove all revenue tariffs fruin her tariff schedule. Thesfr are referred to in article 6 and article 11. ./.'-In article 7 they claim this ,t'o/ be the most important clause in the s agreement frqrii the British point of view> for in it no tariff shall be afforded against British imports unless it .can be shown that similar goods are being .made in New Zealand,; with reasonable, prospects■■ of success. When, however,: the latter condition does exist, then clause 7 ; 8, a clause which they claim ii looked upon by! the New Zealand manufacturers as the most, important clause in the agreementj is to be met ; by the Tariff-Com-mission inquiry, which shall apply the necessary protection to local industries i They point out that in this clause Britain ackndwledges the 1 necessrty, qf protecting the New Zealand inoustfies provided that.those New Zealand industries are being carried out with reasonable prospects "of success,, but dbjSs riot permit that the tariff shall be of lufflcient height as to debar Britain, from becoming a domestic competitor in the New Zealand market. The federation rely uport the first clause of the Ottawa Agreement for an unrestricted entry to New Zealand exports into the British market, but they recognise the qualifications of this clause, as mentioned Tin schedule A. This refers to butter ana other milk products : In A they point out that Britain premises definitely not to review thi treaty for'a period of three years, and this, petfoa will expire on November 15, 1935. After that date, however, the clause says, if it is in the interests of the British producer to do so, Britain may apply a' quota or a tariff on New Zealand exports: .. The main object of :the federations policy is, therefore, to. see Zealand fully carries out all her obligations under the Ottawa Agreements thrift giving the British manufacturer all the privileges that he is justly They believe the goodwill of the British manufacturer towards New Zealand will safeguard for ail time the privileges New Zealand now enjoys under the Ottawa Agreement. -. . ,- ■■.:•'•- The federation acknowledge the great service rendered, to New Zealand by their delegates at. Ottawa,, arid they maintain that this would be more freely acknowledged by the commercial community if the importance of it was fully understood by theni.' They Seek the-cor operation of the New Zealand manufacturers to assist them in the removal of the tariffs" on all goods that are referred to by article 7. . ;, . . w'iThey challenge the opinion held in many quarters, therefore; that New Zealand's action in regard to, tariff reductions will not in any way influence the British Government in .withholding a quota on New Zealand exports. They maintain that such an opinion is a denial of the existence of schedule A, arid would turn the contract into a farce by deleting its sole penalty dause. J to clause eight they Maintain that Britain has fairly acknowledged tie importance of many New Zealand industries arid believes that they are entitled to protection. ":' • .' .•■'.';.'._'' The federation fully recognise the great task of the Tariff. Commission, *tnd knowing the full responsibility that rests upon them, they believe that the commission is carrying out' its arduous duties as speedily as possible. .They challenge the suggestion recently made in the press that if the quota is the set policy of the Government, then there' is no use fighting. They refuse to belief that either Great Britain or New Zealand would so far forget their dignity or duty as to permit the Ottawa agreement to become a mere " scrap of paper," and the fine work carried out by the delegates of both countries at Ottawa to be thrown in the waste paper basket. They challenge the suggestion that any Government which is endeavouring to raise prices deserves the whole-hearted support of the community, as they, do not believe' that this can be done either by a quota or tariff. They believe.. it to be infinitely more important to raise the standard of living in both countries, i.e., by giving the .purchasing power of the people its full value, and not have it devalued by the operation of exchange quotas or tariffs. The Ottawa agreement, in their opinion, is an instrument to which all present tariffs must conform, and should be a guide to the future commercial relationship between New Zealand and Great Britain, and fl&ey believe that if given an opportunity it will bring about a better understanding between the Motherland and this Dominion, without in any way impairing the economic development of the industries in either country.