CANADIAN TRADE

Otago Daily Times, Issue 23594, 2 September 1938, Page 13

CANADIAN TRADE

AGREEMENT EXTENDED DUMPING DUH ON BUTTER ABOLISHED ARRANGEMENT FOR REGULATION “ BALANCE IMPRACTICABLE ” ‘From Our Parliamentary Reporter) WELLINGTON, Sept. 1. The extension for another year of the trade agreement between Canada and New Zealand was announced today by the Minister of Finance (Mi W. Nash). The agreement was due to expire on September 30, but has been arranged to continue till September 30, 1939. To safeguard the interests of Canadian producers of dairy produce, an arrangement has been made under which the New Zealand Government will co-operate in regulating shipments to Canada to keen them within reasonable proportions. “ The agreement was first entered into in May, 1932, and the original term 'was for one year, but this period has been extended from time to time,” Mr Nash said. “When.the last extension of one year was made in September, 1937, it was hoped that in the meantime negotiations might be undertaken with a view to the conclusion of a new agreement. There has been no opportunity for this, but it will be recalled that on March 1 last, concurrently with the revision of the Australian trade agreement, the Canadian trade agreement was amended by the adjustment of duty in respect of a considerable number of items. This action was taken for the express purpose of safeguarding the interest of New Zealand manufacturers.”

Concessions In Duty Mr Nash also referred to the fact that prior to the last extension the Canadian Government had agreed to make concessions in duty on certain classes of goods imported from New Zealand. The most important of these was mutton and lamb, in respect of which the duty was reduced from three cents to i a cent per lb. Opportunity had since been taken of this concession to send small shipments to Canada with a view primarily to testing the market and the indications were that in the course of time a valuable market might be developed. “ Considerable trade has also been enjoyed this year in respect of butter, the value of shipments during the first six months having amounted to £167,615*,” Mr Nash continued. “This trade was facilitated by a decision of the Canadian Government following representations by the New Zealand Government to admit a quantity free of the exchange dumping duty of approximately four cents per lb, which has been applied for. some years to shipments of butter from New Zealand and which, combined with the ordinary duty of five cents per lb. has had the effect of reducing the trade to negligible proportions. As a result of further negotiations the Canadian Government has now agreed to abolish the exchange dumping duty on butter, which means that shipments from New Zealand will in future be admitted on the payment of the duty of five cents per lb fixed under the agreement. The British preferential tariff rate is eight cents per lb, less a discount of 10 per cent., and the general tariff is 14 cents per lb. “ It-is recognised,” Mr Nash said, “ that the Canadian Government would have difficulty in acceding to the request of the New Zealand Government in this matter without some provision safeguarding the interests of the Canadian producers. , An understanding has accordingly been reached whereby should such action be considered necessary the New Zealand Government will co-operate as far as possible by limiting .shipments to such reasonable proportions as will not unduly prejudice the interests of the Canadian producers.” Mr Nash expressed the opinion that this arrangement would place the trade in butter on a much more satisfactory basis than hitherto and that it would prove of considerable benefit to this Dominion In Canada’s favour “ The trade between New Zealand and Canada is very much in Canada’s favour,” Mr Nash said. “ The figures for* New Zealand exports and imports each year since 1932 are as follows (expressed in New Zealand pounds'):—

“ The most gratifying feature of these figures is the steady increase shown in exports from New Zealand to Canada,” the Minister added. “ These comprise chiefly wool, hides and calfskins and sausage casings. As mentioned above a considerable quantity of butter was also exported to Canada this year. The principal item in the imports from Canada is motor vehicles and parts, including tyres, which last year reached the substantial figure of £2,017,000 Newsprint is another important item amounting last year to £294,000. It is realised that, having regard to the nature of the commodities exchanged and required by either country, a balance of trade is quite impracticable. So far as this Dominion is concerned the most good can be achieved by the development of our export trade with Cam ada and the Government is doing all that is possible in the circumstances to that end.” Notice regarding an Order-in-Council extending the agreement until September 30. 1939. appears in to-night’s Gazette.

N.Z. N.Z. Exports. Imports. Balance. Year. £ £ £ 1932 229,000 1,108,000 879,000 1933 542,000 1,265,000 723,000 1934 693,000 2,099,000 1,406,000 1935 653,000 2,450,000 1,797,000 1936 1.103,000 3,327,000 2,224,000 1937 1.663,000 4.564,000 2.901.000