The Taranaki Herald. (DAILY EVENING.) TUESDAY, JULY 1, 1913. TRADE WITH CANADA.

Taranaki Herald, Volume LXI, Issue 144133, 1 July 1913, Page 2

The Taranaki Herald. (DAILY EVENING.) TUESDAY, JULY 1, 1913. TRADE WITH CANADA.

Since the establishment of a direct steam service between New Zealand and Canada quite a respectable trade has been built up between the two Dominions. In the twelve months ended March last New Zealand imported from Canada goods ' to the value of £416,861, and during the same period exported to Canada produce to the value of £588,701, thus showing a balance of about £170,000 in favour of this Dominion. The advantage thus gained is due chiefly to the fact that nearly the whole of our exports to Canada are subject to preferential rates of duty, while a much smaller proportion of our Canadian imports are given preference. This fact leads Mr. W. A. Beddoe, the Canadian, Trade Commissioner to New Zealand, to remark that there might be made some variation on the tariff to bring the two countries more upon an equality in the exchange of commodities. Personally, Mr. Beddoe does not believe in building up foreign countries at the mgmnsfii_pf ..the. British JSmj>ire.

He is a firm believer in the principle of preferential trade within the Empire. While the ideal condition, to his mind, is free trade within the Empire, the nearest thing to it, and what might be accomplished now, is preferential trade between the Overseas Dominions. But the preference must be upon a fair basis and upon articles of trade that will be affected. The experience New Zealand has already gained of the great benefits derivable from preferential treatment of her products by Canada ought to stimulate us to extend the principle as far as possible. Butter furnishes an example. The ordinary duty on butter imported into Canada is twopence per pound, but New Zealand receives the British preferential treatment, butter from this country being admitted under a duty of three halfpence per pound. Consequently, out of ,£365,866 worth of butter imported into Canada during the eleven months ended February last New Zealand supplied no less than £266,855 worth. Australia, which does not receive preferential treatment, supplied during the same period only £5042 worth. New Zealand meat receives preferential treatment also in Canada, and the way the trade is growing is shown by the fact that about 11,000 quarters of beef, 1500 carcases of veal, and 1290 quarters of mutton have been shipped to Canada during the last five months. There are other directions in which trade between the two dominions might easily be extended. Last year Canada bought £1,780,723 worth hides and shins, of which only £118,298 worth was obtained from New Zealand. Of £311,0(9 worth of wool purchased by Canada only £23,371 was supplied by New Zealand; while of large quantities of f allow and gum purchased by our sister dominion none was supplied from New Zealand. Mr, Beddoe suggests that the steam service from Eastern Canadian ports to Australia and New Zealand should be made greater use of, but there is no doubt that the best way to develop a trade is td remove the restrictions which hamper it. If it were possible—and we do not know why it is not—to institute free trade between Canada and New Zealand a very great trade might be done, to the advantage of'both countries. At Winnipeg beef is selling from lOd to 15d per pound and bacon at even higher prices, and there is no apparent likelihood of prices going down —rather the reverse. Butter from New Zealand Iras already established itself in Canada and the chances are all in favour of larger supplies being required as time passes. Canada is becoming a manufacturing country and requires such raw maternal as wool, hides and skins, tallow, etc.' In fact a large and important market is opening no there for many of New Zealand’s staple products. But we must not expect Canada to continue to buy largely from ns if she finds she can trade on better terms elsewhere. If we wish to retain the trade we must be prepared to exchange products. Whatever Canada can supply we shonll take, not onl^ T to fill the ships both ways, but also to save tin* cost of exchange which is incurred if a large part of the settlement has to be made throng!! London. One of the arguments used lately by a southern miller against the duty being taken off wheat and flour was that the loc V. industries of wheat-growing a ad milling might be killed and then New Zealand would be at the mercy of Australian wbeatgrowci s, or, in the event, of a drought in Australia, of United States growers. Canada, however, could easily supply all our requirements in the way 'of wheat and flour in the improbable event of oper. ports for those commodities storping the growth of wheat in New Zealand. • But there are probably other directions in which preference could he extended to Canad i without going to the extreme of removing the duty entirely from Canadian wheat and flour, and if it is worth our while paying heavy subsidies for steamship lines between Canadian ports and our own it is surely a mistake tc counteract these facilities for exchange of trade - by maintaining high artificial barriers in tbs

shape of Customs tariffs. Mr. Beddoe, by the way, promised the local Chamber of Commerce some time ago that he would visit New Plymouth with a view of interesting Taranaki in Canadian trade. It might serve a useful purpose if he could find time to come and gives us his views firsthand on the subject of closer preferential relations between the two Dominions. Australia is likely to make a big bid presently for some of the trade now in our hands and, it would be as well for our producers and traders to keep well informed on the subject.