THE NEW GERMAN TARIFF EFFECT ON COLONIAL PRODUCE.

Otago Witness, Issue 2720, 2 May 1906, Page 14

THE NEW GERMAN TARIFF EFFECT ON COLONIAL PRODUCE.

{.F&om Oub Own Correspondent.) LONDON. March 2. Yesterday the new Gentian Customs tariff came into force, and iis «ffeel can hardly fail to be a powerful one. Kven New Zealand will not escape the chrtoh of its wide-reaching teutaeles. One section of the new Customs law empowers tho Government to place a surtax ranging up to 100 per cent, of the ordinary tariff ctuties on dutiable goods proceeding irom States that treat German ships or products less favourably than those of other nations. In the case of duty-free goods, a special tax may be levied up to 50 per cent, of the value. Besides this penalty tariff, the Customs law provides for two other kinds of tariff. One. known as the "general" tariff, cod sis ts of relatively high rates of duty, and 13 meant to be used by the German Government for bargaining .purposes. The other is known as the "conventional ' r tariff, and la the result of- com-

mercial treaties with the central European Powers. Iv many cases the rates of duty are much lower under the " conventional " than nnder -the "general" tariff. As Germany has at present 28 . " most-favoured-nation" treaties as well as most-iavoured-nation agreements with pother countries, the "conventional" tariff is almost general in its application, and applies also to British exports

Now, under the old tariff frozen meat had to pay a duty of 7s 6d per cwt, under the new " conventional " tariff it will pay 13s 6d, and under the new "general" tariff no less than 22a 6d. There are similar relative, increases in the duties on wheat, oats, fruit, chilled beef, bacon, etc. There are- other product'ons in which New Zealand will be hit by the new duties. Wool, for instance, will be directly affected. The British woollen industry will also be worse off than ever. Under the old tariff the duties amount to as much as £10 per cwt on. some kinds of. woollen goods • The increases under the new tariff vary from 15 to 30 per cent. As the total annual export trade of woollen goods to Germany is valued at well over £3,000,000, the effect of the liew duties must be most serious.

Again, the duties against leather goods — boots and shces especially — have been greatly raised, and British bcot and shoe manufacturers, badly hit though they were by the old tariff, are bound to suffer more eeverelv still. Tuns while under tho old tariff 1 British leather manufactures, chiefly boots s and shoes, paid German duties of 25s to 32s per ewt, the duties under the new conventional tariff will be 30s to 4?», and imder - the new " general " tariff 4-2s 6d to 90s. These appear to be absolutely prohibitive, and here again Now Zealand products may feel the malign influence, as hides ana leather can hardly fail to be adversely affected.

It need hardly be said that this German move is bomg actively worked in En-gland as an argument in favour of fiscal reform, at anyrate to the extent of retaliatoryduties.