TRADE AGREEMENT

Timaru Herald, Volume CXLII, Issue 20511, 1 September 1936, Page 11

TRADE AGREEMENT

NEW ZEALAND AND BELGIUM EFFECTIVE TO-DAY By Telegraph—Press Association WELLINGTON, August 31. Notification is given in a supplement to the Gazette of the modification (which takes effect to-morrow) of the trade arrangement between New Zealand and Belgium which has been in operation since December, 1933. Under this arrangement New Zealand has granted concessions in duty to certain classes of goods when imported from Belgium, including matches, bootlaces, carpets, moquettes, tapestry, tickings (other than those containing wool) bicycle tyres, glass and glassware, sensitised surfaces, firearms, lead and zinc. On the other hand Belgium has undertaken to admit certain New Zealand products, namely, animal fats, hides, skins, wool, cheese, apples, phormium tenax at rates not higher than those specified, the three firstmentioned items being free of duty.

The present modification of the original trade arrangement is the culmination of negotiations instituted on behalf of Belgium early last year. The matter was further discussed by the Rt. Hon. J. G. Coates with the Belgian authorities during the visit made by him to Belgium in July, 1935, and the proposals were tentatively agreed to. Certain modifications considered desirable from the point of view of this Dominion have since been made to the list of items involved under the agreement. New Zealand undertakes to remit the surtax on a number of items and, in addition, to admit some of them at reduced rates of duty. In making such concessions, however, care has been taken to preserve, in conformity with the Ottawa Agreement, the margin of British preference in not less than 20 per cent, ad valorem or the existing margin where it is lower than that figure, and in order that such should be the case steps have been taken to exempt from primage duty classes of goods affected which are now admissible free under the British preferential tariff.

Goods Affected

The following are the classes of goods in respect of wheih concessions in duty have been made on Belgian goods Items on which surtax only has been remitted: Wine (other kinds), paper, cartridges, printing machines, metals, nails, pipes. Items on which the surtax has been remitted and a reduction made in the rate of duty include maizena and cornflour, cigars, wine (sparkling), glaves, belting for machinery, leather manufactures, glass (bevelled), cartridges (shot 10-24 bore), electrical machinery and appliances, batteries and cells other than storage batteries, machinery and machine tools, hydro extractors, weighing machines, Industrial machinery, cast Iron pipes (N.E.1.), centrifugal cast iron pipes over 6ins to 12ins diameter, pipe fittings and electrical appliances (N.E.1.). In each case the surtax remitted amounts to ninefortieths of the duty except in respect of cigars and short cartridges (10-24 bore), in which cases the surtax is onetwentieth of the duty. Following are items from which the primage duty has been removed in respect of goods admissible under the British preferential tariff: Maizena, cornflour, belting for machinery, etc., paper, cartridges (ball .22 calibre), electrical machinery and appliances, machinery (machine tools and appliances), industrial machinery, metals, nails, tacks, etc., pipes, tubes and tubing.

Belgium has undertaken to admit the following products imported from New Zealand at rates not higher than those indicated, viz. : Honey, natural 60 francs per 100 kilos net weight; sausage casings, salt, fresh or dried, free; kauri gums, free; casein, free.