FIJIAN TRADE

Otago Daily Times, Issue 23504, 19 May 1938, Page 9

FIJIAN TRADE

DIVERSION TO AUSTRALIA HEAVY LOSS TO DOMINION REPORT ON ADVERSE FACTORS (Special to Daily Timer) AUCKLAND, May 18. Pointing out that much of the trade formerly enjoyed by New Zealand has been diverted to Australia, the Suva Chamber of Commerce in a report to the Auckland Chamber of Commerce supplies several reasons for this state of affairs. It instances among them the higher price for New Zealand manufactured goods than Australian, and also the fact that shipping facilities oftep work out to the advantage of Australia. The report states that the drop in; New Zealand imports had never been lightly regarded in Fiji and, generally speaking, importers would prefer to purchase in New Zealand. In addition, a large proportion of the European population was bound to the Dominion by ties of birth and sentiment. As evidence of this friendliness toward New Zealand, there was a preferential tariff from June, 1931, to October, 1932, which gave New Zealand goods a substantial advantage over imports from Australia. Under that tariff, New Zealand merchandise competed successfully in the Fijian market, but the Ottawa agreement precluded the continuation of this preference. It had since been found that manufactured goods from New Zealand could not compete in price with those imported from other Empire sources. One of the effects of the agreement was to bring increasing quantities of Australian-made goods into the Fijian market. It would be appreciated that no amount of sentiment would induce consumers to pay a higher price for goods from New Zealand when similar goods could be purchased cheaper elsewhere. Moreover, the spending power of a large portion of the population was on a very low level and, for that reason, price rather than quality was an important factor. In 1932 Fiji imported goods from Australia valued at £317,046 and from New Zealand goods valued at £100,255. In 1936 imports from Australia were valued at £514,504 and from New Zealand at £56,870. Fijian exports to Australia also increased from £50,098 in 1932 to £241,564 in 1936. Fijian importers were of the opinion that New Zealand was not so highly industrialised as Australia and, until Dominion manufacturers attained a similar state of efficiency, export prices were bound to be too high for Fiji. Under the preferential tariff previously mentioned, goods which were imported from New Zealand, and which now came from Australia, included biscuits, boots and shoes, bran, confectionery, fruits, jams, leather, milk, manures, pickles, paints, and soaps. Tinned milk would appear to be a commodity for which New Zealand was eminently placed to meet competition but, due to the factor of lower prices, the 1936 trade from Australia amounted to £5277 as against £3BB from New Zealand. It was generally conceded in Fiji that New Zealand tinned meats were better than Australian yet, although the Dominion still had a lead in this trade, the margin was surely being reduced by the lower-priced Australian supplies which also had improved in quality. New Zealand also was adversely placed with Australia in the supply of fresh vegetables, including potatoes and freezer goods, and Australian vegetables appeared to have better keeping qualities.