TRADE WITH CANADA

Otago Witness, Issue 4042, 1 September 1931, Page 29

TRADE WITH CANADA

FAILURE OF NEGOTIATIONS.

THE GOVERNMENT CRITICISED. WELLINGTON, August 28. The failure of the New Zealand Government to arrange a satisfactory trade agreement with Canada was dealt with by Mr F. Waite (Reform, Clutha) in the House of Representatives during the financial debate. He said there appeared to be some disagreement between the Prime Ministers of the two dominions as to where the difference of opinion really lay.

Most of us know the history of this matter, ’ Mr Waite said, '“but I want to mention the present position with respect to the New Zealand and Canadian tariffs and the retaliatory measures that have been taken. Most of us know the history -of the matter, but I want to say that the dairy farmers of this Dominion, particularly those who supply butter factories, are very dissatisfied with the present position. No matter what political truce may prevail at present, I say we are not satisfied that this businefjg should rest where it is. We feel that this is not a time for leaning back when a certain section of our producers is being penalised. We believe that negotiations should at once be entered into, so that the whole matter might be reviewed. The Minister of Agriculture (Mr A. J. Murdoch) : Does the hon. gentleman know the price of butter in Canada today?

Mr Waite: The hon. gentleman will have a chance later on to say a few words. He has not been very helpful in this matter so far. What we want is not talk. We want someone to act. It is the lack of action on the part of the Prime Minister that is making the dairy ’farmers of this country very dissatisfied with the present position. We know that for a long time Canada gave New Zealand a special concession, and when Canada decided to protect her own dairy farmers against the United States and also proposed to apply to Australia and New Zealand her ordinary British preferential rate —not a penal rate at all, but the ordinary British preferential rate — a .series of retaliatory acts took place which have resulted to the detriment of the New Zealand dairy farmer. Mr Murdoch: Does the hon. gentleman know the price of butter in Canada today?

Air Waite: I do know. Because 1 am voicing the dissatisfaction of the dairy producers at the attitude of the Prime Minister, some of the occupants of the Ministerial benches are trying to put me off my points, but they are not succeeding.

The Minister of Labour (Mr S. G. Smith) It is not worth while.

Mr Waite: I will have a word to say to the Minister in charge of unemployment later on. After the imposition of a Canadian duty on New Zealand butter New Zealand retaliated by placing Canadian cars, tyres, and accessories on the then foreign list. That brought the squabble to a head, and resulted in the increased Canadian duty from four cents to eisht cents per lb on New Zealand butter. The New* Zealand Government retaliated by placing practically all Canadian goods on the foreign list, and it must be remembered that even now Canada admits New Zealand goods under her British preferential tariff. A deadlock has arisen, and trade between the two countries is very much disorganised. Australia has successfully negotiated a new trade agreement with Canada under which Australian butter is admitted to Canada at 5 cents per lb, whilst our butter is still on the 8 cents per lb list. Mr Murdoch: What about the price of butter in Canada to-day? Mr Waite: The Minister of Agriculture is apparently not competent to answer mj’ questions and argunients, and the Prime Minister is. I wash to place on record the following telegram from the Prime Minister, Ottawa, to the Prime Minister, Wellington, dated July 28, 1931. It is as follows: — We regret that on your journey through Canada to London, and in London, our discussions did not yield dennite results, but so far as this was due to any factor other than lack of adequate time we must decline to accept more than a reasonable share of that responsibility. We suggested that your delegation should return through Canada, as was done by the Australian Minister -of Commerce, in which case a comprehensive agreement might have been reached in time for action by both our Parliaments this session, and regret you could not adopt that course. The telegrams which have been exchanged since have been an inadequate substitute for personal discussion.

“There is evidently a little disagreement between the respective Prime Ministers as to what the invitation was. But the facts are that the Australian Minister returned to Australia via Canada, and the recent favourable trade agreement is the result. Although there are negotiations in progress for a political truce in this Dominion, the Prime Minister should look at the position fairly and squarely. He must see that the dairy farmers are being penalised and that immediate action is necessary*- If New Zealand reverted to the preferential tariff, and Canada admitted New Zealand butter at 5 cents per lb, we would get over the difficulty. Because there have been three unsuccessful attempts to settle the position, and we have got nowhere, that should not deter the Prime Minister. Australia has got a favourable agreement, and that should impel us to reopen negotiations It would be a short-sighted policy to argue that because of the higher duties against Canadian commodities, we are receiving a higher Customs revenue, and therefore should let the matter rest where it is. In the final analysis there would be a loss to the country owing to the fact that the butter producers are being very seriously penalised. I am speaking for many of the dairy farmers of this country when I say that we want these negotiations with Canada opened up as soon as posible.”