CANADA AND AUSTRALIA

Taranaki Daily News, 3 August 1931, Page 10

CANADA AND AUSTRALIA

WORKING OF THE TRADE TREATY.

EFFECT ON NEW ZEALAND. Sydney, July 18. It is feared here that the new trade treaty which has been entered into between Canada and Australia will not tend to increase, friendly trading relations between New Zealand and the Commonwealth. Of course, it is diflL cult to say at this stage just how the treaty will operate, but even a 1 hurried glance must convince that the treaty will hit New Zealand harder thaii any other country. Observers here say that Australia has scored a distinct victory at the expense of New Zealand, particularly as far as dairy produce is concerned. It is feared that New Zealand might regard the treaty in the nature of a "hostile” act, and make trading with Australia even more difficult. It is bound to complicate any negotiations for a treaty between New Zealand and the Commonwealth, .The treaty is certainly one of the most comprehensive inter-dominion treaties yet made, far exceeding in importance to both countries any previous attempt to improve . trade relations. It would seem that the primary industries., of Australia are likely to derive the most benefit, and that at the expense of New Zealand. Both countries agree not to apply the dumping provisions of their laws agains the goods of the other country. This is expected to assist materially Australian butter, dried fruits, and wine. As showing the benefits of the new agreement', it is pointed out that in no case will rates imposed on Australian products entering Canada exceed the British preferential tariff, wfiile in many cases these rates will be below the British preferential tariff. Under the terms of the treaty Australian butter will be. admitted at 5 cent? a lb, and will thus have the advantage of 14s r cwt over New Zealand, butter, which hitherto, held practically the whole of the Canadian market. Australian will also be exempt from the dumping duty which operates against New Zealand, and as against butter from other countries will have the protection of a Canadian tariff of 8 cents a lb on English butter, 12 cents a lb intermediate, and 14 cents general. It is confidently expected here that Australia will capture the whole of the Canadian market for imported butter. Australian cheese will pay 1 cent a lb duty, while the preference against other- countries, except Great Britain, is increased from 3 cents to 6. cents a lb. The Canadian cheese market is at present divided among the United States, the United Kingdom, and European countries. Australian fresh fruits will be admitted free, and it is expected that this will provide a vast 1 market for Australia at a time when such a market is badly needed. At the present time there is a glut of fruit in Australia all the year round. Just now the market is glutted with some of the finest oranges the. world produces. There is difficulty in selling them in Sydney as Is a dozen. Of course, big shipments have gone to Canada in the past, but it is a risky trade, and the imposition of the fluty was not an encouragement to exporters to take undue risks. While Australian oranges will be admitted free, oranges from the United States, which'has held , the bulk of the market, and other countries,, will pay a duty of 35 cents per cubic foot. Canned pineapples from Australia will be admitted at 1 cent a lb, with penalties ranging up to 5 cents for pineapple from other countries. It has been announced by the Minister for Trade and Customs that a” contract for £150,000 worth of pineapples had been signed conditionally upon the confirmation of the treaty. Australian concessions mostly conc. m canned salmon, in which an important advantage is given to Canada over the United States, timber, motorcar chassis, and newsprint. Assurance has been given by Canadian salmon packers that there will be no increase in prices because of the preference granted by Australia, Chassis manufacture is more expensive in Canada than in the United States, and the previous preference was therefore of little advantage to Canada. Under the terms of the treaty the position is more than equalised. As both countries were primary producing ones the drafting of the treaty was not an easy one, and great care had to be observed by the representative of ea?h country to ensure that the interests of the other country would not be embarrassed.