U.S.A TRADE

Sun (Auckland), Volume 1, Issue 12, 5 April 1927, Page 3

U.S.A TRADE

IMPORTS INCREASE BALANCE WITH DOMINION Contrary to common belief. the figures of trade between the United States and New Zealand for the past eight years show a balance of 146.850,460 dollars in favour of United States, according to a letter received by the Wellington Chamber of Commerce from the American Manufacturers’ Association. The letter was in reply to one received from the Wellington Chamber referring to the trade balance between the two countries. "We doubt, however,” continued the writer, “whether the trade balance between the two countries is especially important. What is more important is the consolidated balance of any one country with respect to all other countries. RECORD OF EIGHT YEARS For example the United States trade during the last eight years with the whole world has a so-called favourable balance, but for certain individual countries we have unfavourable balances against us. This is particularly true of South-Eastern Europe, Asia, and Africa. However, in none of these cases do we feel that our trade expansion with these regions is being hindered because of our adverse trade balance there. “We owe Brazil a substantial balance but we recognise the balance against us which is paid to Brazil, olu* debtor, in cash is in turn used by them in the purchase of their requirements from England. England, in turn, buys a tremendous quantity of goods from us. This continuing cyclfe of business currents has, as stated above, during the past eight years resulted in a favourable balance on the books of the United States with respect to the world at large. “There is no doubt but our invisible exports, which it is impossible to calculate accurately, leave no balance at all, for it is perfectly obvious that when taken as a whole the income and expenditures of the world must always balance. VALUE OF TRADE FRIENDSHIP “Our trade considerations must instead be based upon buying attitudes and friendships maintained between the buyer and seller in order that the products of our several labours may be of value to each of us individually. “We hope the feeling against the United States tariff will be assuaged, for we are but one of forty to fifty countries that have increased tariff rates. Our objective is not to keep out imports, but to have them enter on a basis that will enable our manufacturers and producers to compete and continue our enormous purchasing power which comes from prosperity. In maintaining our prosperity, we offer bigger and more promising markets to importers. Table statistics will show those countries that have increased the value of their imports to us between 1921 and 1925. The figures indicate clearly our tariff duties are not prohibitive. “In spite of tariffs, our import trade as a whole has increased 71 per cent, in the last four years, showing economic factors are more important than artificial tariffs.

“The value of our imports in 1925 were 4,226,000,000 dollars, of which only 1,575,000,000 dollars (37 per cent.) were subject to duty and 2,651,000,000 dollars (63 per cent.) were free of duty. This is another indication that our tariffs are not prohibitive to imports.” '