Trade With Canada.

Press, Volume LXVII, Issue 20234, 12 May 1931, Page 8

Trade With Canada.

4- cable message from Ottawa yesterday reported the prospect of an extension to New Zealand of the CanadianAustralian trade treaty when tjjftfc agreement has been ratified by the administrative parties to it. This is interesting, because it brings into prominence the remarkable change that has tiiJven place in the trade relations Of the two Dominions since Canada ijnpoped a restrictive duty W New Zealand trotter, This country undoubtedly has suffered in the process, but it is clear that Canada's suffering has been not only more acute, but has aroused § kaener protest among producers and manufacturers. Trade reprisals are always dubious expedients because they usually represent either bad temper or political stupidity, but New Zealand is entitled to whatever satisfaction there may be in the fact that Canada has lost a great deal of valuable trade since its impulsive tariff differentiation in favour of Australia. Official results, as emphasised with regret in Canada, tell their own story. From January to October last year, before the alteration of butter duty against. New Zealand, this country exported approximately 37,000,0001b of butter to Canada, an average of 4,000,0001b a month. In the five succeeding months New Zealand's butter exports totalled only 218,4401b. That was not good business for this country, but Canada fared worse. Last year its export of motor-ears to New Zealand amounted to close 6n 8000, valued at £1,120,000. In January of this year, instead of sending us 650 motorcars, Canada exported 225, valued at £19,800. In February four cars only were exported. It would be inaccurate as well as foolish to pretend that the extraordinary drop in Canada's export of motor-cars was due to New Zealand retaliation, but the result has shown Canadian manufacturers the folly of differentiating between Australian and New Zealand butter. It is amusing also to read in Canadian newspapers that Mr Forbes, is being blamed severely for the prevailing conditions, which are attributed to his failure to return from the Imperial Conference by way of Canada, If this glump in trade would teach politicians the advantage of friendly negotiations in such cases, the experience could be accepted in both countries as a lesson well worth paying for.