OTTAWA AGREEMENT

Timaru Herald, Volume CXXXVII, Issue 19308, 8 October 1932, Page 20

OTTAWA AGREEMENT

TEXT OF AMENDED DUTIES. The full text of the agreement made at the Empire Economic Conference at Ottawa, between the Government of the United Kingdom and the Government of New Zealand is as follows; Article I.—His Majesty’s Government in the United Kingdom undertake that Orders shall be made in accordance with the provisions of Section 4 of the Import Duties Act, 1932, which will ensure the continuance after November 15, 1932, of entry free of duty into the United Kingdom of New Zealand goods and the goods of the mandated territory of Western Samoa which comply with the laws and statutory regulations for the time being in force affecting the grant of Imperial preference, and which by virtue of that Act are now free of duty subject, however, to the reservations set forth in Schedule A appended hereto. Article 2.—His Majesty’s Government in the United Kingdom will invite Parliament to pass the legislation necessary to impose on the foreign goods specified in Schedule B appended hereto the duties of Customs shown in that Schedule in place of the duties (if any) now leviable. Article 3—His Majesty’s Government in the United Kingdom undertake that the general ad valorem duty of 10 per cent, imposed by Section 1 of the Import Duties Act, 1932, on the foreign goods specified in Schedule C shall not be reduced except with the consent of his Majesty’s Government in New Zealand. [Article 4 is deleted from text. I

Article s.—His Majesty’s Government in the United Kingdom will invite the Governments of the non-self-governing Colonies and Protectorates to accord to New Zealand any preference which may for the time being be accorded to any other part of the British Empire, provided that this Article shall not extend to any preference accorded by Northern Rhodesia to the Union of South Africa, Southern Rhodesia, and the Territories of the South African High Commission by virtue of the Customs Agreement of 1930. Article 6.—His Majesty’s Government In New Zealand will invite Parliament to pass the legislation necessary to substitute for the duties of Customs now leviable on the United Kingdom goods specified in Schedule D the duties shown in that schedule, and to exempt j all United Kingdom goods from the ap- | plication of the surtax of nine-fortieths ; or one-twentieth of the Customs duty, | as the case may be. Article 7.—His Majesty’s Government in New Zealand undertake that protection by tariffs shall be afforded against United Kingdom products only to those industries which are reasonably assured of sound opportunities for success.

Article B—Hls Majesty’s Government In New Zealand undertake to Institute an enquiry into the existing protective duties, and where necessary to reduce them as speedily as possible to such a level as will place the United Kingdom producer in the position of a domestic competitor, that is, that the protection afforded to the New Zealand producer shall be on a level which will give the United Kingdom producer full opportunity of reasonable competition on the basis of the relative cost of economical and efficient production. Article 9.—His Majesty’s Govern-

ment in New Zealand undertake that United Kingdom producers shall have an opportunity of putting forward their views in connection with the enquiry referred to in Article 8 hereof. Article 10—His Majesty’s Govern-

ment in New Zealand undertake that no reduction shall be made in the margins of preference of 20 per cent, ad valorem (or its equivalent) or less now enjoyed by the United Kingdom goods over those of any foreign country, and that where the margin of preference now exceeds 20 per cent, ad valorem (or its equivalent) it shall not be reduced below 20 per cent, ad valorem (or its equivalent) except with the consent of His Majesty’s Government in the United Kingdom. Article 11—His Majesty’s Government in New Zealand undertake that the existing primage duty of 3 per cent, ad valorem now levied on United Kingdom goods which are otherwise duty free shall not be increased and shall be abolished as soon as financial conditions permit. Article 12.—His Majesty’s Government in New Zealand undertake to accord to the non-self-governing Colonies and Protectorates and the Mandated Territories of Tanganyika, the Camerons under British Mandate, preferences on the commodities and at the rates shown in Schedule E and also any preference for the time being accorded to the United Kingdom. Provided that his Majesty’s Government in New Zealand shall not be bound to continue to accord any preference to any Colony or Protectorate, which, not being precluded by international obligations from according preferences, either (1) accords to New Zealand no preferences, or (II) accords to some other part of the Empire in the case of Northern Rhodesia, excepting the Union of South Africa, Southern Rhodesia, and the Territories of the South African High Commission, preferences not accorded to New Zealand. Article 13.—This Agreement between his Majesty’s Government in the United Kingdom and his Majesty’s Government in New Zealand is to be regarded as coming into effect as from the date hereof (subject to the necessary legislative or other action being taken as soon, as may be practicable hereafter). It shall remain in force for a period of five years, and if not denounced six months before the end of that period shall continue in force thereafter until a date six months after notice of denunciation has been given by either party. In the event of circumstances arising which, in the judgment of his Majesty’s Government in the United Kingdom or of his Majesty’s Government in New Zealand, as the case may be, necessitate a variation in the terms of the agreement, the proposal to vary those terms shall form the subject of consultation between the two Governments.

Signed on behalf of his Majesty’s Government in the United Kingdom: STANLEY BALDWIN. Signed on behalf of his Majesty’s Government in New Zealand: J. G. COATES. August 20, 1932. Schedule A. As regards eggs, poultry, butter, cheese, and other milk products, free entry for New Zealand produce will be continued for three years certain. His Majesty’s Government in the United Kingdom, however, reserve to themselves the right after the expiration of the three years if they consider it necessary in the interests of the United Kingdom producer to do so, to review the basis of preference so far as relates to the articles enumerated, and, after notifying his Majesty’s Government in New Zealand either to impose a preferential duty on New Zealand produce, whilst maintaining existing preferential margins, or in consultation with the New Zealand Government to bring such produce within any system which may be put into operation for the quantitative regulation of supplies from all 60Ui) tes in the United Kingdom market.

Schedule B. Butter —15s per cwt.

Cheese —15 per cent, ad valorem. Apples, raw—4s 6d per cwt. Pears, raw—4s 6d per cwt. Eggs, in shell — (a) Not exceeding 141 b in weight per great hundred —Is per great hundred. (b) Over 141 b, but not exceeding 171 b —ls 6d per great hundred. (c) Over 171 b—ls 9d per great hundred. Condensed milk, whole, sweetened—--6s per cwt in addition to duty in respect of sugar content. Condensed milk, whole, not sweetened —6s per cwt. Milk powder and other preserved milk, not sweetened—6s per cwt. Honey—7s per cwt. Schedule C. Tallow. Canned meat. Sausage casings. Casein. Meat extracts and essences. Dried peas. Seeds, grass, and clover. Leather. Copra. Sugar of Milk. Gums, others than gum arabic, gum tragacanth, shellac, sticklac, and seedlac. Schedules D. and E. Details to be published later. These schedules contain a limited number of articles of importance to United Kingdom and colonial export trades on which the New Zealand Government is ready to increase preference.