TRADE WITH CANADA

Taranaki Daily News, 15 August 1931, Page 7

TRADE WITH CANADA

NEW AUSTRALIAN TARIFF.

NEW ZEALAND AND BUTTER. Tn the course of his statement to the Canadian House of Commons regarding the reciprocal trade treaty between Canada and Australia, the Prime Minister, Mr. R. B. Bennett, said:— “The agreement secures for Canada the benefits of the British preferential tariff on 415 out of 433 items which make up the Australian customs tariff. In addition, it secures for Canada the benefits of the intermediate tariff of Australia on six items, or part of items.

“Moreover, on commodities of great importance in Canada’s export trade, Australia had adjusted her tariff,to accord our producers a greater margin of preference. On canned salmon, for example, we will get a preference of threepence per pound; on logs, a preference of 10 per cent, ad valorem; and on many classes of lumber a preference of two shillings per 100 board feet. On newsprint paper Canada, is accorded free entry, and the preference over foreign paper is increased to £4 per ton, “Thus the great bulk of commodities exported from Canada is guaranteed, under the new agreement, a substantial tariff preference in Australia. All foreign countries are under the Australian general tariff. “In return, Canada will accord to Australia its British preferential tariff and reduced rates or greater margins of preference on some 28 items, or parts of items, of the Canadian tarifi. This compares with reductions on 20 items, or parts of items, under the agreement at present in force.

“For several years past Australian purchases of goods from foreign countries have averaged considerably more than 300,-000,000 dollars (about £60,000,000) per annum. Canada is in 'a position to supply a large proportion, of this great demand and under the new agreement we believe she will do it.” For the first time, the Prime Minister said, a clause had been inserted in a trade agreement between Canada and another country by which abrogation would not necessarily follow merely be-, cause of difficulties arising out of one or two items. Article 9 of the agreement provided that if one country, found the importation under the agreement of some

production was prejudicial to the domat*. tic industry, then a notice could baj given to the other. If within threfli months the country receiving the notice’ had not cured the difficulty, then auto*, matically the product was to bear duty under the general tariff. Such general tariff was to continue until the notic® was withdrawn. Mr. Bennett drew attention to tM many difficulties that had arisen with. New Zealand over the single item' of butter. As a result of the terms of th® arrangement with that country thers was nothing to do but to abrogate it, Under the new agreement with Australia, if trouble arose over a few items, the main body of the document would still remain intact. The dumping duty would -not apply to imports from AuS> tralia.