'TariffWallRaised

Waikato Times, Volume 109, Issue 18344, 2 June 1931, Page 7

'TariffWallßaised

IMPORTS FROM CANADA GOVERNMENT’S DECISION.' retaliation for butter duties THE ADVERSE TRADE BALANCE. WELLINGTON, Monday. .yrom to-dav practically all imports from Canada NvSl be Placed h general tariff list and accorded tne fame treatment as foreign goods as regards taxation, Tjhis decision on the part of the New Zealand Govern ment has been made in vmw 0 complete failure to reach any satm faction with Canada regarding Pt> Imports itf froin Canada which. will still be admitted at British P re tial tariff rates are: Gum boots, paper, other than wrapping and carbon P P * when imported in rolls not less than 10 inches wide; plain and barbe - including fencing wire. In addition, no alteration has been made in tariffs on 'Canadian rubber moto vehicles and engines the duty on which was increased last ugu ®*’ ittltude of the New Zealand Govern ment is revealed in a cablegram sen hv the Prime Minister, the Rt. non. G W Forbes to the Prime Minister of Canada, the Rt. Hon. R. B. Bennett on May 26. The cablegram is as ' follows: — Butter Exports. “I much regret that the Canadian Government are unable to malm any concessions on New Zealand The New Zealand Government ha attached the greatest importance .to the tariff treatment of this .commodity in view of the fact that it has counted for 80 per cen of New Zealand’s exports to Canada and has helped materially to reduce the otherwise heavy adverse trade balance of this Dominion in respect of Canada. I am unable to understand your statement that direct purchases of wool from New Zealand toy Canadian manufacturers will ln th ® ne “T future equal the value of the former butter trade between New Zealand and Canada. In this connection I am adViS “U) That Importations of New Zealand butter into Canada in the Year 1929-1930 amounted to over 13,500,000 dollars (£2,700,000). “(2) That during the year ended March, 1930, the total Canadian importations of unmanufactured wool from all countries (including New Zealand) amounted t° J ust ° 4 000 000 dollars (£800,000) and that the importations of such wool during the last nine months of 1930 showed a fall of more than 40 per cent, as compared with the corresponding period of the preceding year. “Even, therefore, if New Zealand were to provide the whole of the Canadian importsof .such, wool it would not appear to be,possible that the value could approach in the near future the value of New Zealand’s former butter exports to Canada. It is agreed that there may be considerable purchases by Canada of New Zealand goods through other countries. On the other hand there are considerable purchases by New Zealand of Canadian goods through other countries. The Present Position. “The position generally appears to the Government in New Zealand as follows: — “1 On the decision of the Canadian Government in April, 1930, to denounce the then existing arrangement under which New Zealand butter was allowed entry into Canada on the same terms as Australian butter, namely, cent per pound, the. New Zealand Government, after calling attention to the heavy balance of trade in favour of Canada Immediately agreed with the suggestion (and has continued to ur ge)—that direct negotiations should take place between the two Dominions and requested the matter to Cbe left In statu quo until conversations could be initiated. “2 As the Canadian Government were apparently unable to send a Minister to New Zealand for negotiations It was agreed that conversations should be opened during my presence in Canada in September, en route to the Imperial Conference. “3 In the meantime, however, the Canadian Government thought It desirable to make effective the proposed Increase in the tariff on New Zealand butter from 1 cent to 4 cents. “4 In addition, on the day of my arrival In Ottawa, this rate of 4 cents was increased to 8 cents“s Notwithstanding the increase of 700 per cent, in the Canadian tariff on New Zealand butter, Australian butter continued for a lengthy period to bo admitted at the old rate, 1 cent per pound, and, it is understood, is still being admitted at a much more favourable rate than New Zealand butter. “6 It is understood also that Hie Canadian Government, in addition to this increased tariff rate on New Zealand butter, are imposing a dumping duty of a novel character if butter is sold or landed below the price arbitrarily fixed by the Canadian Government. "7 As a direct result of these penal measures the export of butter from New Zealand to Canada has been almost completely terminated. The Inference that Ne\V Zealand butter still enjoys the benefits of the British preferential rate Is clearly Illusory, that rate having now been fixed at such a figure as to he prohibitive. "8 The conversations at Ottawa were entirely ineffective, the Canadian Government being unwilling to alter the increased tariff on butter, and not yet in a position to enter into detailed tariff negotiutons in general. “9 Further conversations in London wore equally ineffective. “10 Subsequent communications indicating the New Zealand Government's willingness to continue negotiations and their invitation to the Canadian Minister to visit .New Zealand for this purpose huve led to no definite result. Anxious to Discuss Subject. “11 More than 12 months have elapsed since the Canadian Government's notification of (he Intention to impose a prohibitive duly on New Zealand butter enlerng Canada. The Government of New Zealand at all times have been willing and anxious to discuss in detail trade relations between New Zealand and Canada, but, in view of your reply of the 14th instant to my'telegram" of March 18, the New Zealand Government have been forced to the conclusion that there Is no Immediate prospect of detailed nogotla(Conflnued In next column.)

tions or any effective mitigation of the unsatisfactory treatment of New Zealand butter in Canada.

“12 Strong pressure has for years been brought upon the Government of New Zealand >to increase the duties on many lines of Canadian goods, of which more than sufficient for local requirements could be produced in New Zealand. These requests have consistently been refused on the ground that mutual sacrifices are necessary to develop inter-'lmperial trade. 'For similar reasons repeated requests to impose a dumping duty on specific Canadian imports have been refused.

“13 The Government of New Zealand are now at a time when eoonomic conditions in New Zealand are particularly difficult and are faced with the position that substantial remissions of duty are granted here on Canadian goods without corresponding advantages to New Zealand. Welcome Early Negotiations. “14 The New Zealand Government are obliged to consider increased taxation to balance the Budget and It will be impossible to maintain the present position after June 1. “15 The Government of New Zealand therefore intend on 'that date to increase the duties on many lines of Canadian goods, but so that remissions made here and the resulting trade are not less than remissions now estimated to be made on New Zealand goods entering Canada and the trade resulting therefrom. “16 The Government of New Zealand would still welcome early negotiations to end the present unsatisfactory position, and, as already advised, would be happy to receive ; Canadian Minister here for that purpose at the earliest possible date. "17 In view of the fact that the New Zealand Government have at all times been anxious to enter into effective conversations on CanadianNew Zealand trade and continued requests have been made in New Zealand for information as to the progress of negotiations, I propose to publish the text of this telegram on June 1.” IMPORTERS INDIGNANT. PUBLIC WILL HAVE TO PAY. DEVICE TO OBTAIN REVENUE. (By Telegrrapn.—Press Association.') AUCKLAND, Tuesday, The chairman of the Chamber of Commerce, Mr A. uVf. Seaman, commenting on the Canadian tariff decision, said that owing to the extreme importance of New Zealand's lost export trade. It might well repay New Zealand to send a Minister or delegate to Canada to resume negotiations. He emphasised that as - the duties iwere raised without warning, they must he borne by New Zealand importers and consumers in respect :jf goods already in transit. Importers interviewed, are indignant that no warning was given, and said the result will he that the public will have to pay. One said the tariff alteration was a device to obtain additional revenue. An agent of Canadian manufacturers expressed the view that the tariff would cut down Canadian imports by 75 per cent. He pointed out that some Canadian lines are not. made in Britain, and said that some of them will now be supplied by foreign countries, particularly the United States and Gzecho-Slovakia. MR BENNETT EXPLAINS. FORMER GOVERNMENT BLAMED. United Press Assn —Elec. Tel. CopyrlgM. (Received June 2, 11.25 a.m.) OTTAWA, June 1. The Canadian Prime Minister, Hon. Ri B. Bennett, states that the action of New Zealand in increasing the tariffs against Canada followed a refusal to permit New Zealand butter to displace Canadian. He claimed that the blame for the present situation rested on the former Government of Canada for making it possible for trade in New Zealand butter lo start In Canada.

ONLY TEMPORARY. CANADIAN MINISTER’S HOPE. NEGOTIATING AN AGREEMENT. UDlted Press Assn.—Elcr., Tel. Copyright. (Received June 2, 9.30 a.m.) OTTAWA, June 1. The belief that New Zealand’s action in removing the advantage, of British preference on nearly all Canadian exports is only a .temporary measure, was expressed by the Minister of Trade and Commerce, Mr TI. I-I. Stevens, who expressed the hope that new negotiations proceeding for a trade agreement between the two countries would he satisfactorily developed resulting in the replacement of British preference. He expected definite results after the close of the present Canadian Parliamentary session. THE TWO DOMINIONS. BRITISH COLUMBIA HARD HIT. (Received June 2, 9.35 a.m.) VANCOUVER, June 1. New Zealand’s preference action was declared to be a severe blow to British Columbia by delegates attending the annual convention of the Canadian Manufacturers’ Association here. Delegates express the hope that something will be done quickly to secure an amelioration of the action. . The exports from British Columbia of lumber, newsprint, fish and lumber products arc regarded as hard hit.