TRADE WITH CANADA

Wanganui Chronicle, Volume 74, Issue 191, 14 August 1931, Page 11

TRADE WITH CANADA

NEW AUSTRALIAN TARIFF. NEW ZEALAND AND BUTTER. it the course of bi statement to the Canadian House of Commons regarding the reciprocal trade treaty between Canada and Australia, the Prime Minister, Mr K. B. Bennett, said: — “The agreement secure- for Canada the benefits of the British preferential tariff on 415 out of 433 items which make up the kust ra iai ■ ist • tariff lu addition, it secures foi Canada the benefits of the intermediate tariff of Australia on aix items, or part of items. “Moreover, on commodities of great importance in Canada’s export trade, Australia had ’adjusted her tariff to accord our producers a greater margin of preference. On canned salmon, for example, we "ill get a preference of threepence pen pound; on logs, a prefer eace of 10 per cent, ad valorem; and ou many classes of lumber a preference of two shillings per 100 board feet. On newsprint paper Canada is accorded free entry, and the preference over foreign paper is increased to £4 per “Thus the great bulk of commodities exported from Canada is guaranteed, inder the new agreement, i substantial sariff preference in Australia. All foreign countries are under the Austraiai. general tariff. “In return, Canada will accord to Australia its British preferential tariff and reduced rates or greater margins jf preference on some 25 items, or parts 3f items, of the Canadian tariff. This • mpares with reductions on 20 items, parts of items, under the agreement csent in force. •r several years past Australian (

purchase of goods from foreign countries have averaged considerably more 0 dollars (about £60,000,per annum. Canada is in a position. to supply a large proportion of this great demand and under the new agreement we believe she will do it.” For the first time, the Prime Minister 'aid, a clause had been inserted in a I j trade agreement between Canada and 1 .another country by which abrogation ‘ would not necessarily follow merely because of difficulties arising out of one or two items. Article 9 of the agree- . meat provided that if one country found the importation under the agreement of some production was prejudicial to the domestic industry, then a notice could be given to the other. If within three months the country rei ceiving the notice had not cured the difficulty, then automatically the product was to bear duty under the general tariff. Such general tariff was to continue until the notice was withdrawn. Mr Bennett drew attention to the many difficulties that had arisen with New eZaland over the single item of butter. As a result of the terms of the ■ arrangement with that country there was nothing to do but to abrogate it. Under the new agreement with Australia. if trouble arose over a few items, I the main body of the document would .'till remain intact. The dumping duty would not apply to imports from Australia.