DUTY ON CANADIAN CARS

Taranaki Daily News, 22 August 1930, Page 8

DUTY ON CANADIAN CARS

AN INCREASE ANNOUNCED REPLY TO CANADIAN TAXATIONj TRADE TREATY DISCONTINUED. NEGOTIATIONS TO BE OPENED. By Telecrsph.—Presi Association. Wellington, Last Night. Canadian motor vehicles and access*, oriea are to pay increased duty, accord«> ing to an announcement made in the House of Repreaentativca to-day by th® Prime Minister, the Hon. G. W. Forbea. “The Government hag for some time been in communncation with the Government of Canada concerning the trade relations between the two. countries,” said Mr. Forbes. “It will be remembered that in 1925 a trade agreement wan made between Australia and Canada under which certain reductions in duty were made on Commonwealth product® entering Canada. The benefits, of thia agreeiqent were extended to New Zealand goods on October F, 1925.”.,. After giving details indicating th® extent to which the New Zealand export trade had increased under th® agreement, Mr. Forbes continued: “It will be noticed, however, that notwithstanding the increase in exports from New Zealand to Canada the balance of trade is still considerably against New Zealand. During. 1929 butter formed over 80 per eent. of New Zealand’s total exports to Canada. As a matter of fact the butter.sent has formed about 20 per cent, of the total exports of that commodity’from New Zealand ever since New Zealand in 1903 adopted a system of preferential tariffs. Th® benefits of the lower duties have always been extended to Canadian pror ducts. _ “It is estimated that the concessions in duty granted by New Zealand to Canada are much greater thau those made by Canada on New Zealand products, even with the lower rates provided for in tlie Australian agreement.. In April last the then Canadian Government suggested that discussions should take place between the two countries with a view to the negotiation of a direct trade agreement. At th same time it informed us that after the expiry of six months the benefits of the Australian agreement could, not be to New Zealand products but that Canada was willing to extend the British preferential tariff rates to New Zealand goods in return for the continued grant of British preferential tariff rates in force in New Zealand to Canadian goods.

COUNTERVAILING. DUTIES. “Shortly after this, in May, 1930, th© Canadian Parliament passed, an Act increasing the British preferential tariff rate on butter to a minimum of four. ■ cents per pound, which was the rate under the general tariff in April last At the same time countervailing duties were imposed on butter, fresh ineats, eggs, oats and potatoes. The eftect of these countervailing duties is that, if the New Zealand rate on the Canadian woods concerned is higher than that in force in Canada on New Zealand goods a higher rate can be charged on New Zealand products, if imported into Canada since April last. “We have been in communication with the Government of Canada with a view to the maintenance of the duty of one cent per lb. on New Zealand butter until a direct trade agreement could be made and implemented by legislation here. The negotiations have been delayed owing to the Canadian weneral elections which took place towards the end of last month. The new Canadian administration has informed the Government, in effect, that it cannot extend the Australian agreement rates to New Zealand. products beyond October, but that it is willing to enter into negotiations for a direct trade agreement. The Government Ji as a general rule averse to a policy of tariff retaliation, especially with respect to a sister Dominion, but it is felt that the matter is of such moment to New Zealand, and especially to the dairy industry, that some action must be taken. It has therefore been decided that Canadian motor vehicles and accessories are to be placed on the general tariff m force in April last. An Order-in-Couu-cil bringing the new duties into, tore© will be gazetted to-day. • . ■ “It is not proposed to apply tpe increased rates to goods already exported from Canada, as it is felt that action should be taken so as to inflict as little hardship and inconvenience as possible on' our own importers. The Government is willing, pending the completion of a direct trade agreement, <o replace Canadian motor vehicles on the British preferential tariff, provided that the Canadian Government will similarly continue to grant to New Zealand products the rates fixed by the Australian and Canadian’ agreement. I propose to discuse ’ this matter with, the Government of Canada when passing through that Dominion oh my way W the Imperial Conference.” , Mr. Coates: Has .the Canadian Government been advised of the decision i Mr. Forbes: Yes.