CANADIAN—NEW ZEALAND TARIFFS

Waikato Times, Volume 110, Issue 18392, 28 July 1931, Page 9

CANADIAN—NEW ZEALAND TARIFFS

(To the Editor)

Sir, —Owing to a correct understanding of the present unfortunate tariff war not generally being understood, and as we have investigated the whole position, we take the liberty of writing to your valued paper setting out our findings. The new trade agreement between Canada and Australia has been ratified and -these two parts of the British Empire -have a very favourable trade treaty and ■their relations are most friendly. On the other hand, New Zealand, though her policy of retaliation, instead -of negotiation, is still in the midst of a tariff war and trade between the two Dominions is. practically at -a standstill. . We most -sincerely urge the New Zealand Government, as retaliation -has failed, to now re-open negotiations with the Canadian Government on a sound and mutually fair basis. New Zealanders are known throughout the world for their broad outlook and love -of fair play and everyone must admit that the Canadian -Government Is equally justified, with the New Zealand Government, in giving Its farmers reasonable protection. New Zealand has for years -protected her dairy farmers by a duty on imported butter of twenty per cent, which last year was -increased by the surtax of 9-40ths. New' Zealand also lias very heavy tariffs -against Canadian timber, wheat and flour which tariffs have been increased from time lb time. At this stage it may he advisable to briefly recapitulate the various phases of this unfortunate tariff war:—

1. Owing to the United’ States of America placing an embargo on Canadian cream, Canadian (dairy farmers had necessarily to turn to making butter Instead of exporting cream. Due to -this, and to the severe climatic conditions, as compared with New Zealand, the Canadian Government considered that the dairy farmers were entitled to reasonable protection. Therefore, on the 12th April, 1930 she gave N\nv Zealand six months’ notice of cancellation of the Australian trade agreement which had been extended to New Zealand and under which the duty on New Zealand butter was -one cent per pound, and notified that after October 12, 1930, the duty would be four cents per pound as per the -British preferential tariff. Although New Zealand enjoyed tills special concession of one cent per pound on butter she gave Canada no -special concession in return. May avo at this -stage point out that although ’New Zealand had placed exceedingly high tariff rates on -Canadian lumber, wheat and flour (far in excess of the present Canadian rate on New Zealand butter) Camada made no protest beyond requesting that similar products from foreign countries he -placed on a higher tariff than that applied to Canada. Our 'Governnient, however, whuld not oven agree to this although early in last year a deputation of lumber exporters from British Columbia -came to New Zealand and appealed to our -Government along these lines. 2. The New Zealand Government considered that a duty of four . cents per pound on butter was prohibitive and on August 21, 1930 (before the increased duty was -actually in effect) retaliated against Canada by Increasing Hie duty on motor -cars and accessories from 10 to 35 per cent., effective on all shipments leaving Canada after that date, no prior notice being given to the New Zealand Importer. 3. The effect of this action -only brought retaliation from the Canadian Government and on September 16, 1930, the duty on New Zealand butter was Increased to eight cents per pound effective on October 12, 1930. It might be noted here -that, even now' New Zealand is not on the foreign list —the foreign duty being fourteen cents per lb. 4. This unfortunate state of affairs dragged on until June 2, 1931, when the New Zealand Government dropped -a further bombshell by placing practically all imports from Canada on the foreign tariff effective immediate-ly-—no provision even being made for exemption of shipments on the water. After pressure was brought to bear and the hardship and loss to New Zealand importers pointed out, these shipments on route were exempted.

New Zealand importers and merchants are still being penalised, however, on all contracts entered into by them prior to this last retaliation, which contracts they are morally till'd legally obliged to honour. A number of these call for goods specially manufactured for New Zealand under New Zealand Health Department regulations, Pure Food Acts, Public Works regulations, .etc., and Canadian manufacturers cannot be expected to accept cancellation'of same. This Association has pointed out all along that the Impression that a duty of four cents per pound was prohibitive was incorrect. From information we have gathered both in New Zealand and Canada it is apparant that owing to our butter being so definitely superior and the severity of the Canadian winter, a duty of four cents per pound would not be anything like a prohibitive tariff particularly in Canada's winter • season. It is interesting to note from the new Canad'lan-Australian trade agreement that the duty on Australian butter entering Canada lias been fixed at five cents per pound, which obviously signifies that Australia considers she can sell 'her butter in Canada on this rate.

Roth the Canadian and tho New Zealand Governments have, undoubtedly, made mistakes, hut now that Australia has beaten us to the post, we urge that the past be forgotten We make an urgent appeal to all interested parties and to Hie general public of New Zealand to do ail in their power to see that fair consideration is extended to both New Zealand and Canadian interests and to urge our Government to call a truce on a mutually satisfactory temporary basts and then open negotiations with Hie Canadian Government wJlli a view lo arranging a permanent trauo agreement which would lie to Hie bcncllt of both Dominions. it is essential to put an end to this tariff war with ils damaging effect and severe hardships. The New Zealand dairying season is now approaching and also the Canadian winter. Therefore, unless some immediate action is taken, as Australia lias now a preference over New Zealand, she will reap the benefit at New Zealand's expense and Hie New Zealand dairy farmer will miss the opportunily of selling any butler lo Canada during Hie coming season. The general impression seems In he that New Zealand exports only butter to Canada. This is not so—for many years we have exported Hie following:—Wool, sheep skins, casings, hides, etieese, kauri gum, casein, milt ton, beef, calfskins, veal, peas, seeds, apples, onions, hemp, canned meals, gelatine and honey. ExuorU

of wool direct to Canada were:— 1928, £196,702; 1929, £195,610. Canada buys annually wool to the value of about £1,150,000 which Is Imported into Canada from United Kingdom and United States principally. Therefore, it is obvious that New Zealand wool is purchased through the leading brokers In England and United Slates, particularly as the demand in Canada is for crossbred wools. It Is understood that there has been a revival of the woollen manufacturing Industry in Canada due to the tariff revisions of 1930 | and a much increased demand for im- i ported wool is anticipated. The ; New Zealand Year Book shows New Zealand with 30,8-1 1,287 sheep ami Canada with 3,728,309. .Consequently j Canada cannot supply her own re- j quirements of wool and must purchase j overseas. It will lie seen, therefore, | that there is great scope in Canada for , increasing our exports of all (he above , products, but if tills present tariff I war continues and we keep tho ; majority of Canadian goods on the ! foreign'' tariff we cannot blame her J if she raises the tariff against, us on \ Hie above, products. 'l’llis Assoeia- j Hon Is doing what little it can to j bring about the desired result and is ; in close touch with associations in i Canada who are making the strongest appeals to the Canadian Government. An imrnediale sell lenient ol tills dispute. wo feel sure. Is in llie best in- , terests of both Dominions and will j dednilcly lend toward a free develop- i moot of trade within Hie Empire.— 1 mil, etc., A. .). Wil.RoN, siecrelary. ; Canadian - Bril is 1 1 Traders' Assoeia Hon of New Zealand. !