TRADE WITH CANADA

Poverty Bay Herald, Volume LXIV, Issue 19378, 16 July 1937, Page 14

TRADE WITH CANADA

'NEW ZEALAND'S POSITION LARGE RECENT EXPANSION GROWTH OF IMPORTS According to a report from New York, the New Zealand Minister ol Finance, the Hon. W. Nash, has achieved the basis of a new trade agreement with Canada. The present trade agreement, which the new treaty, if adopted by the two Governments, will replace, came into force on May 24, 1032. It was originally for one year, but was extended from time to time, and the present date of expiry is September 30, 1937. Despite the benefits of the treaty, the balance of trade has continued to 'remain largely in Canada's favour. Figures for the past six years, with the balance adverse to New Zealand, are as follows: Exports Imports to from Canada Canada Balance Year £ £ £

Main Items of Imports With the recent growth of New Zealand's imports, Canada has been favourably placed to supply a large quantity of this Dominion's requirements in manufactured goods. The growth in the leading classes since 1932 is emnhasised in the following table:— 1932 1936 £ £

On the other hand, with her improved income from exports, Canada has bought more freely, and this in turn has been reflected in an expansion of her purchases from New Zealand, particularly in the past year. At the same time, New Zealand's purchases grew so considerably that the proportion has been maintained, and Canada is still selling about £3 worth of goods to this Dominion for every £1 purchased. The F.xport FrospecCs

Under present conditions there appears little opportunity of a reduction in this disparity. New Zealand's principal exports to Canada include wool, hides and skins, sausage casings, apples, flax fibre, and kauri sum, and in the past year all of these items reveal a welcome increase.

A big trade has been done in sausage skins, and a recent decline was explained by Canadian buyers as being due to the fact that New' Zealand offerings were restricted owing to the activity in other markets. Trade in apples has shown a gradual annual increase, while sales of seeds and kauri gum have materially expanded. Some years ago Canada provided an outlet for a quantity of New Zealand butler, but this trade has been completely lost, wTch little hope of a restoration. The growth of the dairying industry in Canada, and the fact that in the last two years Canada has become an exporter of butter to the London market, explain the promptitude with which latterly she has placed dumping duties on any butter shipments from New Zealand.

1931 . . 256,890 1,339,790 —1,082,900 1932 . . 244,160 1,098,210 —854,050 1933 . .. 560,875 1,258,311 —697.43C 1934 . 097,865 2,088,132 —1,390,267 1935 . . 656,984 2,439,253 —1,782,269 1930 . . 1,103,008 3,315,937 —2,212,929

Motor cars .. 49,C88 713,847 Motor lorries 4,709 170,984 Tyres GG.179 201,807 Printing paper 18(5,394 432,721 Other paper 41,284 123,501 Hosiery 74,592 103,907 Footwear 85,489 109,541; Electric machinery 31,202 107,572