TRADE WITH CANADA.

Taranaki Daily News, 17 June 1930, Page 8

TRADE WITH CANADA.

Though the general election in Canada is primarily a domestic concern of that Dominion some of the issues upon which it is'lieing fought are of peculiar interest to New Zealand. The leader of the present Opposition, Mr. R. B. Bennett, has pledged the Conservative Party, if it obtains office, to abrogate all existing treaties “negotiated by the previous Government mid injurious to Canadian agriculture.” Though the statement has some of the vagueness that is not unusual in election manifestoes, it is fairly obvious that the trade treaty between Australia and Canada, in which New Zealand is to some extent a partner, is the arrangement the Conservatives in Canada desire to see brought to an- end or considerably modified. The present Canadian Ministry has already notified its intention to raise the duties upon dairy produce from this country, and has suggested the drafting of a separate treaty between New Zealand and Canada. While the Conservatives in Canada are pinning their faith to protection for agriculture by means of Customs tariffs, the present Minister of Trade and Customs there, Mr. James Malcolm, is advising the country to increase its production of wheat, and to do so more cheaply than ever before. High-priced wheat, he maintains, has the effect of driving European countries, where the standard of living is rising but slowly, to seek other and cheaper substitutes. As a consequence the market for Canadian wheat is restricted. Mr. Malcolm’s advice is that, given wheat produced at a cheaper price, the market fori it is practically unlimited. The statements of the two party leaders show how great a cleavage there is between the Liberal and the Conservative ['attitude towards agriculture. So far as New Zealand is concerned, whatever ' the result of the Canadian election may be, the need for some rearrangement of trade between this country and the older Dominion is imperative. Though exports to Canada of dairy produce have increased considerably in the past three years, there is still a heavy balance in favour of Canada in the business done between the two countries, and when the higher duties upon New Zealand produce come into force the margin in Canada’s favour seems likely to increase. As with Australia, trade in products which all regard as vital to the prosperity of tlie country has led to difficulties between Canada and New Zealand, and the raising of duties against exports from this country. To those who preach the doctrine of inter-Empire trading the results of inter-Dominion attempts in that direction are not encouraging. The economic conference to be held in connection with the Imperial Conference this year will face a heavy task when it endeavours to show how further development of inter-Coinmon- . wealth trade may be brought about without offending the susceptibilities of any Dominion or colony affected.