BIG SURPLUS IN CANADA

Taranaki Daily News, 3 May 1930, Page 9

BIG SURPLUS IN CANADA

BRITISH TARIFFS LOWERED

EFFECT. UPON NEW ZEALAND

FULL PREFERENCE APPLIED

TRADE AGREEMENT SOUGHT

By Telegraph—Press Assn. —Copyright,

Ottawa, May 17.

The Minister of Finance, Mr. C. A. Dunning, in his Budget speech announced an estimated surplus of £8,910,400 for the fiscal year. He announced numerous and complex changes in tariff rates, involving, under the general tariff, increased rates on 54 items and decreases on 46; under the intermediate tariff, an increase in rates on 35 items and decreases on 95; and under the British preferential tariff increases on 11 items and decreases on 270. When the revision is completed the Customs tariff will consist of 1188 items, of which 589 will be free.

The British preference changes proposed, Mr. Dunning said, would have the effect of greatly increasing the British preference in the Canadian market. Canada was not engaged in a tariff war with any country, he said, and the tariff charges were not the result of any bargain with any other country They were the expression of the spirit in, which Canada would approach the Imperial Economic Conference in a few months’ time.

“We do not intend to meet other countries of the British Commonwealth of Nations in a spirit of petty bargaining, but rather in a broad spirit of willingness to become in ever-increasing measure good customers to those who treat'us in like manner,” said Mr. Dunning. “This is the spirit in which we desire to meet all nations, but we believe' that within the British Commonwealth of Nations lies the greatest measure of opportunity for the mutual development of trade. Lccause of our common heritage, kindred institutions and common patriotism.” The Budget itself, under the countervailing tariff, makes the duty on vegetables, eggs and grain the same as that of countries exporting to Canada. The duty on British-grown tea will be removed. Canadians abroad will be made subject to income-tax. Mr. Dunning announced that duty on New Zealand butter would be increased immediately from 1 cent to 4 cents per pound. The trade agreement now in operation with New Zealand would be terminated on, October. 12. After October 12 Canada will extend the full British preference to New Zealand. The Government of Canada has proposed to New Zealand that a direct trade agreement should be negotiated to supersede the present arrangement. "We hope to be able to arrange for a meeting of representatives of both countries in the near future to endeavour to reach a mutually satisfactory agreement,” said Mr. Dunning. He announced that he expected the completion of the Newfoundland trade agreement shortly. The Canadian Trade Commissioner, Mr. Croft, commenting on the cables, states that the new treaty was designed to extend trade between Canada and New Zealand and afford slightly greater protection to the Canadian dairy industry, says an Auckland telegram. Canada has been exporting large quantities of milk and cream to the United States, but with the proposed raising of the American tariff Canadian farmers feared a surplus of butter-fat. Mr. Croft also pointed out that at present no direct agreement exists between Canada and New Zealand.