WORLD TARIFFS

Otago Daily Times, Issue 26617, 13 November 1947, Page 8

WORLD TARIFFS

NEW ZEALAND’S PART GENEVA AGREEMENTS RELATIONS WITH BRITAIN SAFEGUARDED Parliamentary Reporter WELLINGTON, Nov. 12. There was nothing' in the tariff agreements that would affect relations with the United Kingdom, stated the Minister of Finance and Customs, Mr Nash, in opening the debate on the report of the New Zealand delegation to the United Nations Conference on Trade and Employment at Geneva in the House of Representatives to-day. He added that New Zealand had not changed a single tariff without first consulting the United Kingdom and other Commonwealth Governments, nor had any other Commonwealth Government altered any tariff without first consulting New Zealand. Mr Nash said the result l ; of the tariff discussions held parallel with the Charter talks at Geneva would not be made known until announced by the secretary of the United Nations, Mr Trygve Lie, on or about September 18. One of the major points in the Charter involved quantitative restrictions, restrictive business practices and intergovernmental commodity agreements. Greater Development

Among the major objectives it was hoped to secure was economic development, especially in under-developed areas, equal access to markets and products, a reduction of barriers, and the elimination of discrimination. It would take, he thought, .many years for equal access to markets to be worked out. Mr W. S. Goosman (Oppn., Piako): It is just a vision! Mr Nash said it was a bit more than that. The Minister then reviewed 'the structure and functions of the International Trade Organisation, and said that the voting procedure had not yet been clarified, but the present suggestion approximated to one member, one vote. Fundamental provisions of the Charter were those on employment and economic activity, said Mr Nash. The provisions amounted to generalised undertakings that members would follow concerted full employment and developmental policies, expand purchasing power, production and consumption, eliminate unfair y labour standards, and always seek stable balances in their overseas trading. It was recognised that those provisions were somewhat vague, and they could rely only on goodwill and co-opera-tiori between members. Restrictive Practices Opposed

Governmental protective measures to establish, develop, or reconstruct industry or. agriculture were recognised if non-discriminatory but only ,on the approval of the International Trade Organisation, which must ensure that such measures were the least restrictive that could be applied and that other members’ interests were not unduly prejudiced, said the Minister. The development provisions were designed primarily for under-developed countries, and it was doubtful whether, in the absence of special circumstances, New Zealand could readily use them as an escape. Members must abide by the agreements on tariffs and margins of preference madq at Geneva, under which any concession granted to one member would be available to all members. Such concessions were multilaterally applicable, and that was a departure from the usual bilateral bartering procedure formerly adopted between nations. Any Empire preferences not negotiated at Geneva remained unimpaired. Subsidies unduly stimulating exports were forbidden, but schemes of stabilisation of primary producers’ incomes were protected. State enterprises were not to discriminate in their trading, Mr Nash said, and must buy and sell solely in accordance with commercial considerations and must not be operated to protect unduly domestic producers or consumers or to restrict trade. New Zealand’s position regarding her bulk purchase agreements with the United Kingdom was in doubt under that provision, and further clarification and negotiation would be necessary at Havana. It would be New Zealand’s policy, while seeking to co-operate in every way to endeavour to embody in the Charter provisions which would' enable her to subscribe to the general objectives of the International Trade Organisation through the appropriate machinery without sacrificing the national policy which appeared to her to be most beneficial in maintaining employment and production.