TRADE PACT.

Star (Christchurch), Volume LXIV, Issue 903, 26 October 1933, Page 1

TRADE PACT.

N.Z. AUSTRALIA’S BEST CUSTOMER. Righting Adverse Balance. TRADE COMMISSIONER GIVES EXPLANATION. ‘ United Press Assn.—By Electric Telegraph—Copyright. (Received October 26, 11 a.m.) CANBERRA, October 26. Mr L. J. Schmitt, Trade Commis- j sioner for New Zealand, was in the j House when the New Zealand-Austra-lia trade agreement was tabled. In an interview he said that the agreement would enlarge the bonds of friendship | between Australia and New Zealand. He hoped that a more favourable trade balance would result for New Zealand. Judging from comments he had heard among Ministers and members, the agreement should make for greater stability between the two countries. He said that for the two years 1931-32 exports of Australian goods to New Zealand had been £5,119,000, and imports of New Zealand goods by Australia £2,185,000. Thus in two years Australia had enjoyed 72 per cent and New Zealand 28 per cent of the trans-Tasman trade. During the last decade New Zealand had purchased goods from Australia valued at £38,250,000, while in the same period Australia's purchases from New Zealand had been £24,300,000, the balance in Australia’s favour being £13.950,000. Mr Schmitt stated that New Zealand had increased its proportion of several important classes of imports from Australia during the past three years as follows: Confectioner}', 57 per cent. Hosiery', 12 per cent. Stationery, 20 per cent. Paint and varnish, 19.8 per cent. Iron and steel, 47.6 per cent. Fencing wire, 17.5 per cent. Electrical machinery, 11.2 per cent. j Leather and leather goods, 24.4 per , cent. Glass and glassware, 16 per cent. | Books, papers and music, 16.2 per j cent. As a matter of fact New Zealand is j Australia’s best customer, Australia’s ' share of the grand total of imports to New Zealand being 11.64 per cent in j 1932. Of all British countries, except- J ing the United Kingdom, Australia is j the largest supplier cf New Zealand i imports. Mr Schmitt expressed the hope that the new treaty' would facilitate the development of trans-Tasman trade and enable New Zealand to gain a more favourable position in regard to the adverse balance which was so very apparent at present. Agreement Tabled. The Minister of Customs (Mr T. W. White) tabled the proposed new trade agreement with New Zealand in the House of Representatives to-day. He said the agreement safeguarded the interests of Australian primary industries, j and provided substantial benefits for Australian secondary industries. Most of Australia's trade with New Zealand was in secondary products, which depended almost wholly on preferences, which the agreement ensured. The Minister also revealed that an exchange dumping duty- on Australian goods had been obviated. He gave details of the terms of the agreement, which comes into force by proclamation. Mr White, in moving the second reading debate, referred to Sir Massy Greene’s visit to New Zealand, the smoothing out of the difficulties concerning citrus fruits, and the recent happy' decision of the New Zealand Government to admit South Australian oranges and Queensland pineapples. He expressed the opinion that Australia should, with the preference now granted, be able to oust foreign competitors w'ith raisins, and also capture the market for canned pineapples. Australia was practically the only' country whose export to New Zealand had increased in 1932. Mr White added that the treaty' embodied a sincere effort to reach a satisfactory agreement, and while some of the concessions might be open to criticism, it would be unwise to fail to recognise that in the absence of preferences to New Zealand, Australia’s trade must suffer a serious set-back. Just as the two countries in the Anzac spirit had co-operated in the war, so they should come together in peace to promote arrangements for their mutual interests. The debate was adjourned.