WORLD TRADE

Otago Daily Times, Issue 26215, 27 July 1946, Page 6

WORLD TRADE

THE BROAD OUTLOOK REMOVAL OF BARRIERS SIGNIFICANCE TO DOMINION (P.A.) WELLINGTON, July 26. The great interest taken through New Zealand in the effect of Bretton Woods and the International Monetary Fund on the Dominion’s trade was understandable, said the Dominion secretary of the Farmers’ Union, Mr A. P. O’Shea in an address to-day at a meeting of the Makara-Hutt branch of the Federated Farmers, but it was unfortunate that in the concentration of interest on these points the importance of the proposed international conference on trade and employment was being entirely overlooked. “I am convinced,” Mr O'Shea said, “ that the proposed conference is of much greater importance to New Zealand than the Bretton Woods Agreement or the agreement to set up an international bank. Banks do not buy goods; they can help people to buy them or refrain from such help. If, however, there are trade barriers in the form of import and exchange controls or tariffs, then international trade.is hamstrung. That is the position in the world at present and if we are to have prosperity that attitude must be broken “New Zealand is dependent on overseas trade more than any other country except possibly Switzerland,” Mr O’Shea said. “We must see to it that the barriers to our trading with other nations are broken down. To do this we must

see that we are not offending.’’ Mr O'Shea said it was obvious that the United States Government recognised the need of lower tariffs for a greater volume of international trade in spite of a strong internal movement for their continuance, and it was vital that New Zealand should take more than ordinary interest in the conference on trade and employment. Cooperative action regarding trade and employment was indispensable to the success of such other measures as those dealing with monetary and exchange stability. Under the proposals outlined in the memorandum on the conference by the American Secretary of State, Mr James Byrnes, said. Mr O’Shea, no nation would seek to maintain employment through measures likely to create unemployment in other countries or incompatible with international undertakings designed to promote an expanding volume of international trade. “ This means, in effect,” he added. “ that no nation should seek to produce within its borders things which can be better produced elsewhere and should concentrate on the production of those things for which it is particularly suited. This is important to New Zealand with our great advantages in farm production. “ Given proper conditions,” Mr O’Shea said, “we can expand primary production in New Zealand very considerably indeed, but sooner or later if we do this we shall come against the problem of selling our produce in markets other than the United Kingdom.” “The real hope for New Zealand’s economic future, therefore,” he added, “is an easing of the restrictions on the entry of our produce into other countries, and to this end we should take an active interest in the proposals to free world trade."