The Wanganui Chronicle MONDAY, AUGUST 18, 1930, TARIFF REPERCUSSIONS

Wanganui Chronicle, Volume 73, Issue 346, 18 August 1930, Page 6

The Wanganui Chronicle MONDAY, AUGUST 18, 1930, TARIFF REPERCUSSIONS

"pIE come-back of a Customs Tariff can never be foreseen and that is one reason for not relying too much upon Customs duties for revenue, nor for using the tariff as an instrument for retaliation and other purposes. Tariff imposts frequently beget retaliatory action which docs more harm than the evil, if evil it be, that it is intended to remedy, in the first place. This should be always prominently before the minds of people in this Dominion because the export trade is sensitive enough without being exposed to further disturbing factors. For instance, New Zealand’s exports to the United States in 1928 were valued at £4,260,315, and to Japan £657,915. The major portion of this trade is comprised of the export of wool. Is it desirable that tlias valuable trade connection should not be aggravated for the sake of a few onions coming into New Zealand in the off season? This onion rejection policy of the Government may be just the small dislocation to start a big movement. Just as the dislodgement of a pebble on a mountain side may start an avalanche, so a small but influential section of America or Japan may start an agitation to exclude our produce. There are always interested parties who are willing to assist such campaigns. It is considerations such as these that are agitating the minds of the manufacturers of British Columbia at the present time. The outcome of the Canadian elections has, it is claimed, engendered fears in Australia that the Australia-Canada Treaty will be wiped out, and a statement is asked for from the Prime Minister. British Columbian interests are concerned as to the effects which possible tariff revisions and repercussions will have upon salmon, lumber and paper. It is to be noticed that it is again the export industries that are afraid of tariff repercussions.

The same fear of the tariff come-baek is being awakened in the United States of America. The recent move of M. Briand to initiate a United States of Europe is appreciated by Americans for what it is, namely, the European reaction to the high tariff policy of the United States. “Disguise it as the nations of Europe may attempt to do,” comments the New York Times, “it is plainly designed as a means of meeting certain arrogant policies and pretensions of the United States. It is a weapon not yet forged, but it soon may be, and may be used against us, unless this nation shapes it course more wisely than it has lately been doing. Thus far the Briand project has not advanced beyond the stage of an understanding, but even a tacit agreement to work together against American financial and commercial domination may quickly prove to be an effective means of making Europe as independent of America as our isolationists boast that we are of Europe.” Just to give a perspective to the picture of American exports to New Zealand it may be remarked that they represent just a third of one per cent, of America’s total export trade. The United States interest in this market, therefore, can be estimated. Rightly handled there is greater prospect of trade with the United States increasing and it is not worth while risking repercussions from that big market for the sake of a few onions. If the United States cannot get away with her “arrogant pretensions” New Zealand is likely to gain little by trying to copy the United States.