RECIPROCAL TRADE.

Waikato Times, Volume 116, Issue 19459, 26 December 1934, Page 4

RECIPROCAL TRADE.

AUSTRALIA & DOMINION

ARGUMENTS AGAINST EMBARGOES

That restrictions on trade 'between Australia and New Zealand are deprecated by some Australians is an impression gathered from 'leading articles which have recently appeared in two Sydney papers.

An article in the Sydney Morning Herald of November 20 says that, any curtailment of trade between Australia and New Zealand would be to the ■disadvantage of Australia, and, further, that embargoes hamper, If they dlo not endanger, reciprocal trade and lead to bad feeling. The article reads: 11 Trade with New Zealand Is largely In our favour. We export more to the Dominion than we import .from her. The statistics for the last year have not been published. For the year ended June 30, 1933, exports from Australia to New Zealand were of the .value of £2,770,000, and Imports from the island Dominion were in value £1,103,000. That relatively Australia has gained ground during the last five yeans is borne, out by the fa'ct that our exports to New Zealand have not fallen to anything like the extent that our imports from New Zealand 'have fallen. The 'fall in the latter case from 1929 to 1933 is 50 per cent, while in the case of our exports across 'the Tasman the fall is 34 per cent. Curtailment a Disadvantage. “Any curtailment 'of our 'trade with New Zealand would work to our disadvantage. In the early days of the Commonwealth, wli'en manufacturing in Australia .was not so -extensive as it is to-day, 'the main trade each way was in primary products or. in products'. hut little 'removed from the primary stage. The general export trade of both countries was then, as it is to-day, principally of primary produce; but now more manufactures from Australia have entered into the exchange of products -than have entered from the New Zealand side. A trade treaty embodied in legislation enacted towards the close of 1933 was largely reciprocal in character, and its effect w-as -to make easier the entry of Australian manufactures into the New Zealand market. What disputes have arisen over a series of years have concerned trade in primary produce.. New Zealanders have a practice of saying that Australia started it, hut the fact as to which party started it has no significance. What does matter is: "Which party will end it? The most recent dispute has. concerned potatoes and citrus fruits. We prohibited the entrance of potatoes on the plea that protection was required l against the possible entry of disease'. There is little doubt that the object of the protection given was largely economic. New Zealand has placed an embargo on Australian fruit for the same reason, the fear of disease spreading from Australia to New Zealand and imperilling her export trade in fruit products to other places overseas. Yet from utterances of a former Minister, of Customs, the embargo is frankly retaliatory-

Absurd Situation

.... “The absurdity of ..the situation as far as 'consumers in each dominion are concerned was very apparent during tire current year. Oranges reached an abnormal price in New Zealand while there was a glut of citrus fruits in Australia, and, with prices the lowest on record, growers were at their wit’s end to Hod a market. In October, with scarcity prevailing before 'the advent of the new crop, potatoes in Sydney were bringing £lB a ton, while in New Zealand, which'had a glutted market, the price wholesale was £2 5s a ton free on board steamship. Some relief was given New Zealand: ’by her Government modified the embargo so as to permit the importation of citrus fruits from South Australia, because South Australia is declared to be free of the diseases stated to be feared. In these circumstances the permission of entry given to South Australian oranges may be considered as a gesture of what is'possible if negotiations are entered upon in a spirit of mutual forbearance and.' conciliation. Each dom-

Jnlon has goods which the other requires. Bad Feeling. “Why are impediments placed in the way of interchange, and 'the consumer forced to pay high prices for what are, or. should be, necessaries? If i-t is considered: that there should be protection against dumping, ways may be found by means of the tariff so long as the duties are reasonable and not of themselves prohibitive. Embargoes lead to bad feeling among neighbours, and they and the retaliation to which they give rise .hamper, if they do not endanger, the reciprocal trade which .should proceed, between Australia and New Zealand-” The other article, which . appeared in the Bulletin of November 28, says that red tape and restrictive regulations are out of place between the an o countries, and the sooner they are cut out tlio better. Part of it reads: “For many years the Maori land eis, though their general senifchnents towards Australia have been as friendlj i ever, have felt that th'ey are unjustly discriminated against in vanou, departments of trade. This feeling has expressed itself in retaliatory measures and in a drift of purchases. to .other countries, particularly Ca ' n *' ing the last decade, to go no furt *® r hack, Australia has received foi 'exports to Maoriland about two and a half times what she has paid for imports from that -source. A Fairer Deal. . “When this disparity is discussed in the Dominion the opinion is usually expressed that 'the people and e\en the politicians of Australia are hearUly In favour of a fairer deal, hut that whenever there Is a chance for the Maorilanders 'to turn an honest P e bureaucratic experts get in their tine work. Though both countries engagein about the same sort of farming, there are seasonal 'opportunities for ■trade in even farm produce. For instance, recently potatoes were 'selling in Sydndy at £lB a 'ton. In Auckland •the quotation was £3 a ton, with buyers hard to And. Australia will not take Maoriland potatoes for fear oi disease. She finds a similar excuse for barring other farm produce m times of scarcity on the mainland. Protests are met with “proofs” ; expressed in unintelligible language, and reprisals are resorted 'to in a like spirit and jargon. Not that Australia is the worst offender in 'this regard. Uncle Sam harried! Maoriland butter because a '^h ! e*rni ; S't in the Department 'Of A&rhculture found .000009 of -a grain, of boric acid in one pat.

Restrictions Out of Place. “Bed tape and finicky restrictive regulations are out of place between relations so near in all respects, and the sooner they are cut out the better. There would be greater 'Opportunities for Australian trade with Maoriland and. for Maoriland trade with Australia If.the causes of present discontents were removed; though, of course, trade is not the only matter to be considered. When world emergencies occur Hie two dominions find themselves in one boat. One threat to their national existence has been overcome, largely by the valour of their sons, fighting® side by side. Another may arise, and if it finds them divided and unprepared, the consequences may be unpleasant for both.”