IMPORTS FROM FRANCE

Southland Times, Issue 23794, 17 April 1939, Page 6

IMPORTS FROM FRANCE

Steady Fall Shown

In Value

GRIEVANCES OF MERCHANTS ’

Recent Tariff Changes

Have Effect

(Special to The Times) AUCKLAND, April 14.

Difficulties confronting an expansion of the sales of French goods in the New Zealand market have created a grievance which has been steadily growing among representatives of French business houses. Tariff changes over the past few years have seriously affected a number of important French lines without being deliberately aimed at them, while the recent import restrictions have delivered the final blow to fancy goods and articles of fashionable apparel which in the last 12 months or so have formed the mainstay of French export business with the Dominion.

A city business man said that it was only natural that France should take some retaliatory action, particularly in view of the loss she was suffering under the Government’s restriction of imports. ANOTHER IMPORTANT FACTOR

Another factor was that New Zealand does not grant most-favoured-nation treatment to France, in spite of her importance as. an ally at the present juncture, although such treatment is given by the Dominion to Germany, Italy, Spain and Japan. Naturally, this was an aspect to which French exporters took exception. Trade figures for 1938 show that France purchased from New Zealand goods valued at £1,011,987, New Zealand currency, while the Dominion spent only £199,087 direct with France, giving New Zealand a favourable balance of £812,900. In 1937 the position was even more favourable to New Zealand, exports to France totalling £1,014,941, against imports amounting to £192,593, the balance being £822,348 in favour of New Zealand. Of course, if indirect purchases are taken into account, the position is somewhat improved, but the same factor applies in the case of France. PRODUCE SOLD TO FRANCE New Zealand sells direct to France wool, hides, sheepskins, rabbitskinsand kauri gum. In addition, France is a large purchaser on the London markets of certain New Zealand produce, including wool, hides and a certain amount of butter, cheese and meat. The extent to which French mills buy New Zeaalnd wool is shown by the fact that in the 1937-38 season 115,240 bales were sold to French buyers out of a total of 629,671 bales disposed of, while in 1936-37 France bought 74,547 bales of New Zealand wool out of a total disposal of 686,994 bales. The principal items imported by New Zealand from France during the past two years compare as follows:—

RECENT TRADE LOSSES Once France enjoyed a much larger share of the Dominion’s import trade, the percentage being as high as 1.83 in 1928, since-.when it has fallen steadily until in 1937 it was only 0.42 per cent of the total. Recent events appear likely to reduce the percentage still further.

A few years ago French manufacturers were large suppliers of cigarette papers to this market, but the change in tariff which was made some years ago crippled this business to the benefit of the Australian exporters. Business in silk piece goods has been killed largely by Japanese competition, while the increase in duties on footwear) imposed last March to help the local manufacturer was destructive to French trade in women’s shoes.

Finally, under the policy of import selection, lately introduced by the New Zealand Government, there has been a total prohibition imposed on foreign fancy goods, which has again hit French interests heavily.

1938 (fi.N.Z.) 1937 (£, N.Z.) Millinery, ■ etc 2,307 3.879 Apparel 10,525 6,876 Drapery 9,158 7,744 Carpets, etc. 424 855 Silks, etc. 25,561 19,525 Cotton piece goods 1,666 2,544 Agric machinery 7,034 4,073 Hardware 3,336 Glassware 1,232 1,279 Fancy goods 6,522 6,089 Tyres 949 1,913 ♦Not enumerated.