DOMINION TRADE

Taranaki Daily News, 19 September 1930, Page 7

DOMINION TRADE

MOVES FOR NEW TREATY MR. G. W. FORBES IN CANADA ~ I PROHIBITIVE BUTTER DUTY SOME ADJUSTMENT HOPED UNEVEN TRADE IMPOSSIBLE By Telegraph—Press Assn.—Copyright. Ottawa, Sept. 17. ■ The Conservatives are looking toward the formation of a new trade agreement between Canada and New Zealand, following the arrival to-day of Mr. G. W. Forbes, Prime Minister of <New Zealand. Mr. Forbes stated in an interview: ‘‘l have accepted the invitation of the Canadian Government to enter into conversations with a view to the arrangement of a new agreement, and am looking forward to meeting the Prime Minister, Mr. Bennett, and his colleagues.” Mr. Forbes is the guest of Lord and Lady Willingdon at Government House. Mr. Forbes, in an interview to-day, declared that eight cents "per pound duty on New Zealand butter would be prohibitive insofar as exportation to Canada was concerned. He hoped that an arrangement would be reached whereby some adjustment would be achieved •but, considering the duty was put on just as they landed at Ottawa, the situation did not look too hopeful. New Zealand, however, stood prepared to discuss the matter. The policy of New Zealand was to trade with those nations which traded, with New Zealand. If such nations did not value New Zealand’s business, then the Dominion would have to look elsewhere, notably the United Kingdom. If prohibitive duties were imposed on imports from New Zealand, the -Prime Minister continued, obviously such a one-sided trade could not continue. New Zealand had'to export produce in order to pay for imports. Twenty per cent, of the Dominion’s export butter was sold in Canada,, Regarding the decision of New Zealand withdrawing the preference extended to Canadian automobiles, Mr. Forbes declared that Canadian manufacturers still had 15 per cent, preference over the United States. Mr. Forbes fnet Mr. Bennett and several Cabinet ministers earlier in the day. There is a strong conviction in Vancouver that butter will be placed on the four cent rate, leaving the producers’ organisation to whittle down their profits. There is no doubt in many quarters that New Zealand butter will continue to enter Canada owing to its superior quality and the inability of Canadian dairymen to meet the demand all the year found.