TRADE AGREEMENTS

Otago Daily Times, Issue 22835, 20 March 1936, Page 7

TRADE AGREEMENTS

NEED OF ACTIVE POLICY Communicated bt the Associated Chambers of Commerce. It is a matter of great importance to New Zealand that it should be active in negotiating trade agreements with foreign countries, and that it should remove any obstacles to those negotiations. There is no strong consciousness m the Dominion in the matter of foreign trade, but it is highly desirable that our foreign trade should be extended, while at the same time conserving (and if possible improving) the volume of New Zealand’s trade with the United Kingdom and other parts of the British Empire. . It can never be forgotten that Britain has kept her doors open to New Zealand for years and that out chief market lies there. The Dominion should do everything possible to express its gratitude to Britain in a manner enabling greater reciprocation of trade between the two countries. At the same time, a population of 1,500,000 is not sufficient for a productive country like New Zealand, and one must look to the time .when New Zealand will have a population of 3,000,000, 4,000,000 or 5,000,000, necessitating the extension of our trade with foreign countries because of‘the inability of Great Britain to take our increasing products. Britain would be the last to say that New Zealand should not its trade with foreign countries. Britain herself recognises the necessity for trading with foreign countries as well as with the dominions. Of British trade, 55 per cent, is with foreign countries and 45 per cent, with Empire countries. What is the position of New Zealand in the matter of overseas trade The Dominion’s trade relations with Empire countries are cared for in general by a well-founded and deep-rooted policy of Imperial preference, and in particular by reciprocal trade treaties with the United Kingdom, Australia and Canada. Between New Zealand and the United Kingdom there is the Ottawa Agreement; between New Zealand and Australia, a reciprocal tariff agreement; and there is also a reciprocal trade agreement with Canada. Goods from India, South Africa, Newfoundland and the Irish Free State also are admitted into this country under British preferential tariff rates, although the duty surtax is still payable on goods imported from these countries and from Canada. With foreign countries, however, New Zealand has no trade treaties other than a number of reciprocal uiost-favoiued-nalion agreements, with, however, the single exception of Belgium, with which country New Zealand a reciprocal trade treaty in 1933. ibis treaty marks the only instance in New Zealand’s tariff history where a trade agreement other than a most-favoured-nation treaty has been entered into direct with a foreign country. Up to the pi esc nt New Zealand has negotiated direct with foreign countries 12 inost--1 favoured-nation treaties, although New Zealand, in effect, grants these countries only most-favoured “foreign” nation treatment. Under the conditions of to-day, witn a complicated system of tariffs, embargoes, quotas, exchange manipulations, etc., it appears that trade agreements are about the only means left for keeping international trade alive. Every opportunity should he taken to make such agreements. There are, of course, great obstacles in the way of concluding treaties, and chief among these are sectional interests, but it seems that the future of New Zealand cannot be allowed to depend on inter-Empire trade alone. This Dominion’s total trade lias fallen from £B6 17a lid per head in 1920 to £SO 15s Id per head in 1934. Not only can New Zealand increase its trade with the United Kingdom, but also it has need for a freer commercial intercourse with foreign countries. This requires an active policy by New Zealand of initiation of trade agreements.